Christine Lagarde, the head of the International Monetary Fund urges the U.S. to avoid its 'fiscal cliff.' Lagarde calls on Congress to raise the U.S. debt limit as soon as possible.
Do her suggestions for boosting the U.S. economy adds up?
Gillian Tett, the U.S. managing editor of Financial Times and Stephen Moore, economics writer for Wall Street Journal Editorial Page come OutFront.
Tune to Erin Burnett OutFront at 7p ET.
IMF warns on U.S. economy
Boost the U.S. economy now and worry about cutting deficits later, the International Monetary Fund recommended Tuesday.
The U.S. recovery remains "tepid" and according to the IMF, is expected to grow only 2% this year. Meanwhile, the fiscal cliff looms in 2013, threatening to reduce the economy's growth to only 1% next year.
Meanwhile, the IMF predicts the job market will improve only at a snail's pace. It expects the unemployment rate to average 8.2% this year and 7.9% in 2013.
Amid that weakness and threats from slower growth abroad, the IMF recommended U.S. policymakers spend more on infrastructure, worker training programs, extended unemployment benefits and fixes for the housing market.
"Continued policy action is needed to boost the recovery," IMF Managing Director Christine Lagarde said at a news conference. "We believe the U.S. authorities do not have a lot of space available to act, but they should use it to support the recovery in the near term."