IMF chief warns Trump's tax cuts could destabilise global economy

Reforms may threaten recovery and lead to bigger US budget deficit, says Christine Lagarde

Donald Trump's huge tax cuts are a threat to the stability of the global economy, the managing director of the International Monetary Fund has warned.

Christine Lagarde singled out Trump's tax reforms as one of three risks that could destabilise the current economic recovery, especially given the boom in stock markets in the past year.