IMF’s Lagarde Says U.S. ‘Sequester’ Budget Cuts Inappropriate

The United States’ federal budget cuts, known as the “sequester,” are an inappropriate measure that will weigh on potential growth, IMF chief Christine Lagarde said on Sunday.

“The budgetary procedure that is in place in the United States, which leads to a budgetary adjustment, seems to us absolutely inappropriate … because it blindly affects certain expenditures that are essential to support medium and long term growth,” Lagarde told an economists’ conference in Aix-en-Provence, southern France.

Source : Reuters