US spending cuts loom over global recovery

The warning comes amid gridlock in Washington over whether to delay a series of cuts that will hit everything from America's schools to its air traffic control system, the Telegraph reports. The squeeze in spending - known in the US as the sequestration - is the latest battleground between President Barack Obama and Republicans over how to tackle the country's more than $16 trillion debt. "Everybody is assuming that sequestration is going to take effect," a spokesman for the IMF said on Thursday . "What it means is that we are going to have to re-evaluate our growth forecasts for t...