The International Monetary Fund (IMF) has recommended that the United States stabilise its fiscal position by cutting spending and increasing revenues amid rising debt levels.

Following their annual assessment, the IMF forecasts a moderate 2.6% economic growth for 2024 and highlights the necessity for policy adjustments such as tax reforms and budget cuts.

Managing Director Kristalina Georgieva stressed the importance of these measures to manage inflation, projecting core PCE inflation to ease back to target levels by mid-2025.

In meetings with U.S. economic leaders, including Federal Reserve Chair Jerome Powell and Treasury Secretary Janet Yellen, the IMF advocated for maintaining current interest rates until late 2024 to mitigate economic risks effectively.

Georgieva also praised the resilience of the U.S. economy, noting its recovery to pre-pandemic GDP levels, which supports global economic stability.