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

 

Share:
  Comment  |
   Contact Us  |
  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.

Share:
  Comment  |
   Contact Us  |
  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:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Rep. Ed Royce: Obama Had Chance to Drone ISIS in Iraq

Wednesday, 23 Jul 2014 23:20 PM

The Obama administration had a chance to hit the ISIS terrorist group in Iraq with drone strikes before they gained a st . . .

Defense Expert: Ukraine Can Win If US Provides Equipment It Wants

Wednesday, 23 Jul 2014 22:11 PM

The Russian-backed rebels in Ukraine could be defeated in as little as three weeks if the United States would supply the . . .

Jane Fonda: I'll Be Mad If Rupert Murdoch Acquires Time Warner

Wednesday, 23 Jul 2014 22:01 PM

Jane Fonda says she'll be "so angry" at federal regulators if they approve an acquisition of Time Warner by Rupert Murdo . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

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