Lagarde say US needs a balanced solution for ‘fiscal cliff’

View Comments

In an interview with CNN yesterday the IMF chief said the US needed a combination of automatic spending cuts and tax hikes to take effect in January

“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,” Lagarde said in the pre-taped interview aired on Sunday.

She said the fiscal woes are now the biggest threat to the U.S. economy which is less vulnerable to what happens outside, in Europe for instance.

“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.”

Lagarde predicted the immediate aftermath of falling off the ” fiscal cliff” would be “lack of confidence” and the markets would react very quickly.

(Xinhua News)

 

2012-12-10T06:16:57+0000

All|Economic Data|Europe|Regions

Global economy|IMF|US economy

Pete Jackson

Top

© Copyright 2014 ForexLive™  |  Advertise With Us  |  Login To Comment  |  Sitemap

HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.

ADVISORY WARNING: FOREXLIVE™ provides references and links to selected blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the blogs or other sources of information. Clients and prospects are advised to carefully consider the opinions and analysis offered in the blogs or other information sources in the context of the client or prospect's individual analysis and decision making. None of the blogs or other sources of information is to be considered as constituting a track record. Past performance is no guarantee of future results and FOREXLIVE™ specifically advises clients and prospects to carefully review all claims and representations made by advisors, bloggers, money managers and system vendors before investing any funds or opening an account with any Forex dealer. Any news, opinions, research, data, or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. FOREXLIVE™ expressly disclaims any liability for any lost principal or profits without limitation which may arise directly or indirectly from the use of or reliance on such information. As with all such advisory services, past results are never a guarantee of future results.