Updated: 17 minutes agoU.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 said on Thursday.
that an unchecked rise in debt could eventually sap U.S. growth and snowball into global financial distress. But debt aside, the IMF statement praised the U.S. economy for “a remarkable performance” in recent years. Inflation has largely been brought under control without the sharp increase in unemployment that many economists had expected. Gross domestic product growth remains above expectations and is expected to continue.
In April, as part of a separate review, IMF officials chided the United States for government deficits that stimulated the economy, saying they effectively made it more difficult for the Federal Reserve to cut interest rates. 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.
Finance Finance Latest News, Finance Finance Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: washingtonpost - 🏆 95. / 72 Read more »