IMF weighs in on U.S. budget debate

WASHINGTON, July 25 (UPI) -- The International Monetary Fund Monday said it approved of the U.S. efforts to reduce the long term national deficit.

In a public information notice meant to increase transparency in financial policies, the IMF said current negotiations in Washington "suggest that fiscal policy is set to enter a consolidation phase to address its unsustainable trajectory."

IMF directors, meanwhile, called for "a cautious approach to unwinding macroeconomic support." Directors also "welcomed the administrations objective to stabilize the debt ration by mid-decade and gradually reduce it afterward."

The current hurdle, however, is getting Republicans and Democrats to agree on a plan. House Speaker John Boehner, R-Ohio, Friday walked out on the budget discussions.

The government has until Aug. 2 to agree to a plan. After that, the Treasury Department has said, the federal government could default on some obligations.