money.cnn.com / By Annalyn Censky / July 3, 2012
Christine Lagarde, managing director of the International Monetary Fund, is encouraging U.S. lawmakers to focus on boosting the economy now, and worry about cutting deficits later.
NEW YORK (CNNMoney) — Boost the U.S. economy now and worry about cutting deficits later, the International Monetary Fund recommended Tuesday.
The U.S. recovery remains “tepid” and according to the IMF, is expected to grow only 2% this year. Meanwhile, the fiscal cliff looms in 2013, threatening to reduce the economy’s growth to only 1% next year.
Meanwhile, the IMF predicts the job market will improve only at a snail’s pace. It expects the unemployment rate to average 8.2% this year and 7.9% in 2013.
Amid that weakness and threats from slower growth abroad, the IMF recommended U.S. policymakers spend more on infrastructure, worker training programs, extended unemployment benefits and fixes for the housing market.