Friday, June 28, 2024

IMF Chief Urges U.S. Policymakers to Pay Off the Deficit

International Monetary Fund (IMF) chief Kristalina Georgieva recently urged U.S. policymakers to take advantage of the U.S. recovery from the pandemic and pay off the deficit.

Georgieva said policymakers should put the U.S. national deficit on a “decisive downward path,” in part to ensure investors do not start losing interest in U.S. treasuries. 

The IMF has a more positive outlook for U.S. inflation than the Fed does, expecting it to renormalize to 2 percent by the middle of next year. The Fed does not expect inflation to normalize to 2 percent until 2026

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