IMF chief to US: Don’t back away

Lagarde’s comments come as GOP lawmakers have criticized the IMF’s actions in Europe, and have pushed to limit American involvement.

{mosads}Rep. Cathy McMorris Rodgers (Wash.), a member of the Republican leadership team, called on the White House last month to stand against a $37 billion IMF bailout package for Greece, saying the United States and the fund were merely “throwing good money after bad.”

“There is no way for Greece to start reducing its debt burden until those deficits stop. It’s just simple math,” McMorris Rodgers said.

Republicans on Capitol Hill have also proposed legislation, unlikely to become law, that would roll back a more than $100 billion emergency line of credit that the United States gave to the IMF in 2009.

The IMF approved the Greece loan, which was part of a broader $170 billion measure. The United States has a roughly 17 percent voting share in the IMF.

On Tuesday, Lagarde also warned the United States against moving too quickly to rein in spending.

President Obama, in a speech to the same journalist convention on Tuesday, slammed House Republicans for passing what he called a “radical” budget plan, with government spending and the economy likely to play a major role in this year’s election.

Rep. Paul Ryan (R-Wis.), whose budget cuts roughly $5 trillion more than Obama’s, responded that the White House was choosing to “duck and run” when it came to fighting deficits.

“Yes, most countries need to bring down debt over time, and yes, some countries under pressure have no choice but to cut deficits today,” Lagarde said. “But a global undifferentiated rush to austerity will prove self-defeating. Countries like the United States with low costs of borrowing should not move too quickly.”