IMF chief says drastic US spending cuts could threaten global economic recovery
WASHINGTON (AFP) - As debate rages over the United States budget and borrowing limit, International Monetary Fund (IMF) director Christine Lagarde on Sunday warned US spending cuts must not be too drastic or they could threaten global economic recovery.
In an interview on NBC Sunday talk show Meet the Press, Ms Lagarde said the United States must address its spending on social programs like Medicare and Social Security.
But she said: "The point is not to contract the economy by slashing spending brutally now, as recovery is picking up.
"The pace of consolidation has to be sensible in order to protect that growth which is generating jobs, and which is helping in all sorts of ways," she added.