New York: The head of the International Monetary Fund Christine Lagarde warned United States about growing U.S. government debt and called for a “medium-term roadmap” to reduce it.
Speaking at the Economic Club of New York, she appreciated rapid and substantial progress by U.S. policy makers in repairing the world’s largest economy, pointing to steady growth supported by solid financial demand. But she also
Lagarde said many banks in the 17-member eurozone were still operating with “not enough capital and too many bad loans on the books.” Consequently, she said lower regional interest rates were not benefiting the wider economy. She also urged European authorities to close some banks, if necessary, as part of a push to step up banking reforms.
