Lagarde critical of federal budget cuts

The US federal budget cuts are an inappropriate measure that will weigh on potential growth, IMF chief Christine Lagarde said yesterday, urging Washington to present credible fiscal plans.

Washington enacted across-the-board federal government spending cuts, known as sequestration, in March because Congress could not agree on an alternative.

It has meant everything from furloughs for air traffic controllers to fewer planes for the US Navy to smaller subsidies for farmers.