The International Monetary Fund expects inflation in the United States to return to the Federal Reserve’s target rate of 2% by mid-2025.
to caution International Monetary Fund The increasing risks of debt to the US and global economies and thus the rising costs of financial financing.
The International Monetary Fund urged the United States to raise taxes to control high debt levels, while praising “strong and vibrant” growth in the world’s largest economy and progress toward controlling inflation.
The fund said in a final statement: To review the “Article IV” of American economic policies Rising deficits and debt “pose a growing risk to the U.S. and global economies, potentially leading to higher financing costs.”
The statement included a slight revision to the Fund’s forecast for US GDP growth in 2024 to 2.6 percent, compared to 2.7 percent in the World Economic Outlook report in April.
The International Monetary Fund expects growth in the United States in 2025 to fall to 1.9 percent, unchanged from April expectations, and to remain above 2 percent until the end of the decade.
The US economy “has proven itself to be strong, resilient and able to adapt to changing global conditions,” the fund said.
The Fund expected that inflation in the United States, measured by the personal consumption expenditures price index, would return to its target rate Federal Reserve(The US Federal Reserve) at 2% by mid-2025, which is much sooner than the US central bank’s expectations of returning to the target in 2026.
But the fund has criticized Washington for running a high deficit that, if sustained, will push the U.S. debt-to-GDP ratio to a worrying 140 percent by the end of the decade.
For the second year in a row, the fund recommended that the United States raise income tax rates not only on the wealthiest Americans but also on households earning less than $400,000 a year, a threshold that US President Joe Biden pledged during his election campaign not to touch.
