July 3rd, 2012
04:11 PM ET

IMF urges U.S. to avoid 'fiscal cliff' now

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."


Filed under: Economy • International • News
soundoff (One Response)
  1. Raymond

    Seems most like to believe that growing the economy so that existing spending becomes a smaller percentage .... if population is stable then looking at the number of young adults entering the economy seems to be a way to see if gowth is additional spending ... or the number of consumers actually has increased or decreased..

    July 3, 2012 at 7:40 pm | Reply

Post a comment


CNN welcomes a lively and courteous discussion as long as you follow the Rules of Conduct set forth in our Terms of Service. Comments are not pre-screened before they post. You agree that anything you post may be used, along with your name and profile picture, in accordance with our Privacy Policy and the license you have granted pursuant to our Terms of Service.