IMF slams US for incomplete budget

City A.M. Reporter
THE United States should include in its budget the cost of mortgage loan guarantees and other housing supports, the International Monetary Fund (IMF) said yesterday in a rare criticism of its biggest shareholder.

The IMF also faulted the Obama administration for failing to address the tax deduction for mortgage interest, which it called “both expensive and regressive.” The tax break is hugely popular, and eliminating it would no doubt cause political pain at a time when the Obama administration is already preparing for the 2012 presidential election campaign.

The Obama administration has kept Fannie and Freddie off the budget. Including them would make an already ugly fiscal picture look even worse.