- File Photo
- File Photo

WASHINGTON: International Monetary Fund chief Christine Lagarde said on Friday the looming “fiscal cliff” in the United States threatens the country's international supremacy and the fragile global recovery.

In an interview with BBC World News, Lagarde noted the US fiscal cliff, a combination of severe tax increases and spending cuts due in January, would probably wipe out growth in the world's largest economy.

“The real issues are, in a way, the supremacy of the United States and its leadership role in the world,” said the managing director of the IMF. “To make sure that that leadership endures, the uncertainty has to be removed because uncertainty fuels doubt as to that leadership.”

With the deadline fast approaching, President Barack Obama and congressional Republicans remain at loggerheads in talks to find a longer-term deficit reduction plan that would avert the cliff.

“It's not purely a political issue, it's not ideological, it's broader than that. It really addresses the role of the United States in the world from a geopolitical and economic point of view,” said Lagarde, according to extracts of the broadcast interview.


Do you have information you wish to share with Dawn.com? You can email our News Desk to share news tips, reports and general feedback. You can also email the Blog Desk if you have an opinion or narrative to share, or reach out to the Special Projects Desk to send us your Photos, or Videos.

More From This Section

Looking for a ‘bailout’

The implicit reliance on the government by some businesses — assumed in the shape of a bailout during times of distress

Comments (0) Closed