IMF Managing Director Christine Lagarde says the U.S. economic recovery remains tepid and faces two major downside risks; the European debt crisis and the end of the year fiscal cliff. Lagarde delivered the concluding statement for the IMF’s annual U.S. economic outlook report Tuesday.
She says the IMF’s recommendation is fiscal consolidation but it needs to be sensible and not excessive.Failure to solve fiscal issues will result in slowed economic growth and global spillover effects, Largarde warned decision delays in solving fiscal crisis & debt ceiling will only hurt economic growth and produce spillover effects to the rest of the world.