Lagarde Boosting China IMF Clout Requires New Allies

The International Monetary Fund’s Christine Lagarde used the word “challenging” to describe the Cyprus rescue to which she pledged $1.3 billion. She might say the same about where the IMF stands with the U.S. Congress.

Lagarde, the fund’s managing director, is relying on President Barack Obama’s administration to persuade lawmakers to approve a 2010 global agreement that would double the amount the IMF has available for lending, to about $717 billion. The support of the U.S., which pushed for the package that also gives China and other emerging economies more voting power at the organization, is essential under the lender’s rules.