IMF head urges caution to avoid harming recovery _lowres

Christine Lagarde, managing director of the International Monetary Fund (IMF), speaks during a press conference at the second day session of Women's Forum Myanmar at a hotel in Yangon, Myanmar Saturday, Dec. 7, 2013. (AP Photo/Khin Maung Win)

WASHINGTON (AP) — The head of the International Monetary Fund is warning policymakers to avoid mistakes that could derail a fragile global recovery.

IMF Managing Director Christine Lagarde says Congress should promptly increase the U.S. government’s borrowing limit and the Federal Reserve should avoid withdrawing its financial support too rapidly.

In a speech at the National Press Club, Lagarde says Europe is turning the corner from recession. But she adds that the recovery is uneven and some nations are burdened by high debt and credit restraints. She says the European Central Bank could do more to help the recovery by providing targeted lending.

For big emerging economies such as China, Lagarde says financial regulation needs to be strengthened and officials will need to be alert for any threats such as asset bubbles.