IMF director cautions against big cuts in spending
The managing director of the International Monetary Fund says the global economy is trying to dig out from deep recession, but the recovery remains very fragile, especially in Europe.
She suggests that cutting government spending too quickly in developed countries like the United States and larger European nations could make things worse, not better.
Christine Lagarde says in prepared remarks to the Associated Press Annual Meeting that Europe's faltering would put the US economy and American jobs at risk. "America has a large stake" in how Europe and the rest of the world fares, she says.
She said it's important to continue and expand emergency programmes among the 17 countries that use the euro to help heavily indebted countries there.
Policymakers need "breathing space to finish the job," she says.