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IMF chief urges U.S. to immediately resolve debt spat

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July 26, 2011

IMF chief Christine Lagarde on Tuesday urged the United States to quickly resolve a political stalemate over raising the debt ceiling, warning that failure to reach an agreement would have serious consequences for the world economy.

“The clock is ticking and clearly the issue needs to be resolved immediately,” she told the Council on Foreign Relations according to a text of her remarks.

Lagarde, who has been in the job for less than a month, called on the United States to develop a credible fiscal adjustment plan but cautioned against being too hasty.

“The United States could face another jobless recovery. That is why we’ve advised against fiscal consolidation that is unduly hasty — even as we stress the importance of getting a fiscal consolidation plan agreed soon,” she said.

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This article was posted: Tuesday, July 26, 2011 at 7:27 am

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