Christine Lagarde, Managing Director of the International Monetary Fund, has warned about the United States’ fiscal conditions numerous times. Her most recent discussion took place at the Asia-Pacific Economic Cooperation Summit in Russia, where she explained that the nation’s tax increases and spending cuts are likely to have significant negative impact on the global economy.
Lagarde told reporters:
“We discussed over lunch with the leaders of APEC, the global economic situation, with the three key risks that we see on the horizon…a combination of factors that could also increase the vulnerabilities of emerging economies.”
Lagarde confirmed the IMF’s support for the European Central Bank’s newest project, and expressed their interest in helping with the program design and monitoring.
“Clearly when we get involved we want to be involved both in the design and monitoring of programs. We don’t particularly like to do monitoring without having participated actively in the design.”