Comments from the IMF leader on global growth:

• Downside risks to growth remain
• ‘We could be entering a softer patch’
• US ‘not doing as well as it should’
• Sees ‘self-inflicting wounds’ in the US
• US needs a ‘durable solution’ on debt ceiling

There is a growing sense of frustration with the US recovery and it is slowly being focused on Washington and that’s what Lagarde means when she says ‘not doing as well as it should’. In order for another round of US dollar strength it might be necessary to get a sequester solution.