IMF says US tax, spending bill runs counter to deficit-cutting advice

WASHINGTON, July 3 (Reuters) - The massive U.S. tax and spending bill slated for a final vote in Congress runs counter to the International Monetary Fund's recommendations that Washington reduce fiscal deficits over the medium term, IMF spokesperson Julie Kozack said on Thursday.

Kozack told a regular news briefing that there was a broad consensus that the Republican fiscal policy bill will add to U.S. fiscal deficits, but the U.S. needs to start a fiscal consolidation.

"From the IMF side, we have been consistent in saying that the US will need to reduce its fiscal deficit over time to put public debt-to-GDP on a decisive downward path," Kozack said. "Of course, the sooner that process starts to reduce the deficit, the more gradual the deficit reduction can be over time."