Davos 2018 IMF chief warns Trump's tax cuts could destabilise global economy Reforms may threaten recovery and lead to bigger US budget deficit, says Christine Lagarde IMF managing director Christine Lagarde speaking at Davos. Photograph: Gian Ehrenzeller/EPADonald Trump’s huge tax cuts are a threat to the stability of the global economy, the managing director of the International Monetary Fund has warned. Christine Lagarde singled out Trump’s tax reforms as one of three risks that could destabilise the current economic recovery, especially given the boom in stock markets in the past year. She was speaking shortly after the US president told Davos that his tax reforms had created “a big, beautiful waterfall” of pay rises for US workers, as American companies passed the tax cut on. Lagarde cautioned against people becoming too complacent about the pick-up in global growth reported by the IMF at the start of the WEF’s annual meeting.

Source: The Guardian January 26, 2018 18:48 UTC