Governments must undertake fiscal and structural reforms to reduce the inequalities amid rising populist backlash, the International Monetary Fund Managing Director Christine Lagarde said Wednesday.

Now there is an opportune time for policymakers to put in place policies that will help reduce inequalities, Lagarde said while participating in a Bloomberg hosted panel at the World Economic Forum in Davos, Switzerland, that discussed a middle class crisis.

There is a crisis in the advanced economies, where the middle class was shrinking, she said.

The IMF Chief also pointed out that there was a severe backlash from economists, including those from her institution, when she mentioned rising inequality at Davos in 2013.

Lagarde also expressed doubt if the U.S. President-elect Donald Trump indeed have any economic plan.

“We have very little by way of detailed information as to what the plan is, if there is such thing as a plan,” she said.

Source: RTT