IMF fires warning shot at…

IMF fires warning shot at US

The International Monetary Fund Wednesday urged the Bush administration to develop a plan to balance the federal budget, saying tax cuts had given the economy only a modest lift, and warning that widening fiscal deficits held dangers for domestic and global growth.

U.S. policymakers will need both tax increases and spending restraint to balance the budget, the global lender said in a report, which it described as part of an annual review of the U.S. economy.