The International Monetary Fund does not expect a coming global recession but the risks have increased, John Lipsky told CNBC Friday.
The IMF's updated forecasts won't be released until next month but the retiring first deputy managing director said, "I can say that our base case is certainly not a recession."
The increasing risks "reflect temporary factors [but] some of that reflect worries or lack of confidence in the determination and clarity of vision of key policymakers," he said.
The U.S. needs "credible, medium-term fiscal plans" such as tax reform "that will give confidence to investors and others that the deficit will be controlled…The more credible the medium-term planning, the more flexibility that will exist to deal with temporary impacts" such as, for instance, the potential impact of Hurricane Irene, he said.
Europe also needs credible medium-term fiscal plans as well as the financial "backstopping of European banks," he added.