US Fiscal Policy Criticized by IMF

SOURCE finance.yahoo.com
The International Monetary Fund criticized US policymakers for their unsustainable fiscal policy, warning that overspending could lead to inflation and global financial instability. The US deficit spending has been driven by Covid-related stimulus, infrastructure investments, and rising interest costs.

Key Points

  • IMF warns of unsustainable fiscal policy in the US
  • US deficit spending driven by Covid-related stimulus, infrastructure investments, and rising interest costs
  • Debt held by the public expected to reach 114% of GDP by 2033

Pros

  • US economy's impressive performance driving global growth

Cons

  • Unsustainable fiscal policy risking inflation and financial instability