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IMF's Lagarde urges 'gradual path' for Fed rate hikes

WASHINGTON (Reuters) - The head of the International Monetary Fund said on Monday that the U.S. Federal Reserve should move interest rates up only gradually when it finally begins to lift borrowing costs from near-zero.

"We believe that a gradual path of interest normalization is the right approach," IMF Managing Director Christine Lagarde told a news conference as she discussed the Fund's annual health check on the U.S. economy.

(Reporting by Anna Yukhananov; Writing by Tim Ahmann; Editing by Chizu Nomiyama)