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IMF: World markets upbeat compared to slow economy

Marjorie Olster, Associated Press

WASHINGTON (AP) -- The International Monetary Fund chief says upbeat financial markets are out of whack with a sluggish global economy that is showing signs of slowing even further.

Christine Lagarde is also criticizing the U.S. for cutting back government spending too much and too fast. She said that's taking a toll on growth in one of the world's main economic engines.

In a Washington speech Tuesday, she said "upbeat financial markets" are "sitting uncomfortably beside a more downbeat real economy."