U.S. needs balanced solution for 'fiscal cliff': IMF

WASHINGTON, Dec. 9 (Xinhua) -- The United States needs a balanced, comprehensive approach to deal with the impending " fiscal cliff", a combination of automatic spending cuts and tax hikes to take effect in January, the head of the International Monetary Fund (IMF) said on Sunday.

Christine Lagarde, the managing director of the IMF talked in an interview with CNN about her view on the "fiscal cliff" and the consequences if Congress fails to reach an agreement before the deadline.

"My view, personally, is that the best way to go forward is to have a balanced approach that takes into account both increasing the revenue, which means, you know, either raising taxes or creating new sources of revenue, and cutting spending," Lagarde said in the pre-taped interview aired on Sunday.

She said the fiscal woes are now the biggest threat to the U.S. economy which is less vulnerable to what happens outside, in Europe for instance.

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