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Christine Lagarde sees growth, overheating, debt risks from US tax cuts

Lagarde told Reuters in an interview on Thursday that tax cuts can lift the U.S. growth rate by about 1.2 percentage points

Reuters  |  YOGYAKARTA, Indonesia 

Christine Lagarde
Christine Lagarde (Photo: https://twitter.com/Lagarde)

Monetary Fund said on Thursday she sees positive and negative effects from a "complicated" U.S. tax overhaul, including a near-term growth bump that risks the U.S. and a problematic rise in debt.

told in an interview on Thursday that tax cuts can lift the U.S. growth rate by about 1.2 percentage points annually, and that should will help boost global growth and trade for at least a few years.

"To the extent that growth is higher in the U.S. and because the U.S. is a very open economy, it will probably increase the demand from the U.S. to the other economies around the world, and that's also a positive," said during a week-long trip to

First Published: Thu, March 01 2018. 17:27 IST
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