
The head of the International Monetary Fund (IMF) warned policymakers to avoid mistakes that could derail a fragile global recovery. IMF Managing Director Christine Lagarde said in a speech at the National Press Club in Washington that Congress should promptly increase the U.S. government’s borrowing limit and the Federal Reserve (Fed) should avoid withdrawing its financial support too rapidly. Lagarde said that Europe is turning the corner from recession, but added that the recovery is uneven and some nations are burdened by high debt and credit restraints. She said that the European Central Bank could do more to help the recovery by providing targeted lending. For big emerging economies such as China, Lagarde said that financial regulation needs to be strengthened and officials will need to be alert for any threats such as asset bubbles.
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