The IMF called on the United States for a long-term solution to the issue of the national debt ceiling

The management of the International Monetary Fund (IMF) said that the US economy managed to maintain stability in 2022, but reducing inflation remains a priority for the country. The IMF urged the US authorities to find a long-term solution to the debt ceiling problem.

Fund management believes that in the short term, fiscal tightening “would partially ease the burden of the Federal Reserve System to reduce demand and inflation.” But in the medium term, the IMF advises taking “more decisive action to reduce public debt, including raising taxes and correcting structural imbalances” in social security and Medicare.

“Efforts to address longer-term issues, including reducing public debt, removing restrictions on supply (in the market.— “b”) and the decarbonization of the economy while avoiding protectionism also remain necessary,” the press release on the IMF website.

In June, US President Joe Biden canceled the ceiling of the national debt, because of which the Democrats, led by the White House, argued with the Republicans in Parliament all spring. During this time, fearing a default and a global recession, investors withdrew $37 billion from US funds, and US allies signed a number of trade agreements that bypassed the dollar. As part of an agreement with the Republicans, the border of the national debt ceiling is removed until January 2, 2025, after which the ceiling can be increased. It also sets the boundaries of the US budget for fiscal years 2024 and 2025.

On the reaction of international investors to the situation in the United States – in the material “Kommersant” “Credit risks do not let go”.

Laura Keffer