The International Monetary Fund yesterday called on the US to raise taxes to limit rising debt levels, while hailing a "stable and dynamic" growth of the world's largest economy and progress in controlling inflation, reported Reuters and DPA, quoted by BTA.
In her closing statement for the annual review of US economic policies, IMF President Kristalina Georgieva said that high deficits and debt "create increasing risk for the US and global economy, potentially leading to higher fiscal costs financing and to an increasing risk for the smooth rescheduling of maturities".
In its statement, the IMF slightly lowered its forecast for US GDP growth in 2024 to 2.6% from the 2.7% forecast contained in the global lender's World Economic Outlook released in April.
p>
However, the IMF's forecast for inflation in the US is slightly more optimistic than the Federal Reserve's own forecast, in part because the country's post-pandemic consumer spending boom may be subsiding, Georgieva told the media
She added that the trajectory of US inflation gives the IMF confidence that inflation will return to the Federal Reserve's 2% target in 2025 - which is earlier than the Fed's own forecast of this will happen only in 2026.
Central banks raise interest rates to limit demand, DPA reminds. For the US Federal Reserve, the fight against high consumer prices is a matter of balance. If interest rates are too high, there is a risk of recession.
However, the US economy remains surprisingly strong despite high interest rates.
Yesterday the IMF stressed that the US economy is "remarkably strong" and demonstrates healthy economic growth.
"The US is the only G20 economy whose GDP level now exceeds its pre-pandemic level. This is good for the US and it is good for the world economy," Georgieva emphasized.