U.S. government budget deficits and an escalating debt load pose “a growing risk” to the global economy, marring an otherwise stellar economic performance, the International Monetary Fund
The required fiscal adjustment will mean “difficult political decisions over the course of multiple years,” the fund said, warning, the fund’s managing director. “The U.S. economy is very strong, and it is in good times where you can do more to prepare yourself for risks in the future.”has ruled out at least one of the fund’s suggested remedies: Higher taxes on people making less than $400,000 a year.Summary is AI-generated, newsroom-reviewed.
“The U.S. is the only G-20 economy whose GDP level now exceeds the pre-pandemic level. This is good for the U.S. and it is good for the global economy,” Georgieva told reporters.that the government must offer to entice investors to purchase 10-year treasury securities hovers around 4.2 percent, below rates that were typical before the Great Recession.is attracting an increasing share of global capital, according to Georgieva.
Thursday’s IMF statement is just the latest warning on the U.S. debt picture. On Tuesday, the Organization for Economic Co-Operation and Development said that adding debt at a time of higher interest rates will limit the ability of the United States to meet other needs, including defense, an aging population and future economic shocks.