Tags: IMF | Lagarde | U.S. | economy

IMF Chief Says U.S. Needs Blend of Spending Cuts, Revenue Raising

Sunday, 09 Dec 2012 11:22 AM

 

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
The United States needs a balanced, comprehensive approach to tackle its fiscal woes that should include a mix of spending cuts and revenue increases, the head of the International Monetary Fund said on Sunday.

"My view, personally, is that the best way to go forward is to have a balanced approach that takes into account both increasing the revenue, which means, you know, either raising taxes or creating new sources of revenue, and cutting spending," IMF Managing Director Christine Lagarde said in a pre-taped interview on CNN's "State of the Union," which aired on Sunday.

Lagarde discussed her views about Washington's impending "fiscal cliff," a combination of automatic spending cuts and tax increases that will simultaneously take effect in early 2013 if lawmakers cannot arrive at a deal.

Editor’s Note: Who’s to Blame for the Fiscal Cliff? Vote Here!

President Barack Obama's administration and congressional leaders are still trying to negotiate a way to avoid the cliff of $600 billion in tax hikes and federal spending. Failure to do so could likely tip the U.S. economy back into a recession.

In her interview on CNN, Lagarde cited the fiscal cliff as the biggest threat to the U.S. economy, saying America is more vulnerable to its own domestic troubles than to anything else happening in the Eurozone or China.

The U.S. economy "is less vulnerable to what happens outside, for instance in Europe," Lagarde said.

"I'm not saying that there will be no consequences out of a crisis that could happen in Europe. But the consequences would be relatively minor."

"It is more exposed to its own difficulties and to its own issues than to what happens elsewhere in the world, because it is such a large player."

She told CNN she remains optimistic that lawmakers will come up with a plan before the fiscal cliff deadline.

"My confidence is deeply rooted in the affection that I have for the United States," she said. "I believe that there is a sense of being practical, addressing the issues rather than, you know, dancing around and avoiding issues."

Editor’s Note: Who’s to Blame for the Fiscal Cliff? Vote Here!


© 2014 Thomson/Reuters. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Obama Executive Order Gives Pay Raise to Federal Workers

Friday, 19 Dec 2014 22:36 PM

Federal workers and uniformed military service members are getting a 1 percent pay boost. . . .

Mental Illness History Ruled on Appeal to Not Bar Gun Ownership

Friday, 19 Dec 2014 22:14 PM

A federal appeals court concluded that a history of mental illness shouldn't bar citizens from owning a weapon in a firs . . .

China Arrests US Aid Worker on North Korean Border

Friday, 19 Dec 2014 21:56 PM

China has arrested an American Christian aid worker based near its border with North Korea, his lawyer said Saturday, as . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved