New IMF chief urges US action on economy - KWWL - Eastern Iowa Breaking News, Weather, Closings

New IMF chief urges US action on economy

The new head of the International Monetary Fund is urging U.S. policymakers to take more aggressive steps to stimulate the economy and ease the housing crisis.

IMF Chief Christine Lagarde, speaking at an economic conference in Jackson Hole, Wyoming Saturday, said the United States should reach a "credible" plan to control government debts in the future, but push for stronger economic growth now.

If the economy stagnates, she said, plans to cut government spending in the future will lose credibility.

"Who will believe that commitments to cut spending can survive a lengthy stagnation with prolonged unemployment and social dissatisfaction?" Lagarde said.

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