IMF Report Insights: Last Tuesday, the IMF criticized the Biden administration's fiscal policy, forecasting a U.S. fiscal deficit of 7.1% by 2025, starkly higher than other advanced economies. Global Impact: According to Vitor Gaspar, director of the IMF's fiscal affairs department, U.S. fiscal policies are driving up global interest rates and funding costs, exacerbating financial risks worldwide. Legislative Actions: Despite these warnings, recent moves by the U.S. government, including a proposed $7.3 trillion budget for 2025 and a $95 billion foreign aid package, indicate ongoing expansive fiscal activities. - Contrary to the IMF's warnings, the Biden administration seems undeterred. It recently proposed a $7.3 trillion budget for fiscal year 2025, which if passed, would see the national debt skyrocket to $45.1 trillion by 2034, or 105.6% of the GDP, according to the Office of Management and Budget (OMB). Moreover, in a move that underscores continued heavy spending, the Democrat-led House of Representatives, with support from some Republicans, approved a $95 billion foreign aid package for Ukraine and Israel. Adding to the complexities, the latest Consumer Price Index (CPI) report indicated that inflation remains elevated at 3.8%. Federal Reserve Chairman Jerome Powell has hinted at postponing expected rate cuts until inflation shows signs of subsiding. -- https://mxmnews.com/article/4bdc90e5-deb4-4fdb-88e6-951402f101dd?imf-issues-warning-to-the-biden-administration-on-runaway-national-debt-something-will-have-to-give
