IMF's Gita Gopinath says US needs to curb fiscal deficit, fix debt burden

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IMF's Gita Gopinath says US needs to curb fiscal deficit, fix debt burden - Business Standard

Quick Summary:

The agency said successive US administrations and Congress had failed to agree on measures to reverse the trend of large annual deficits and surging interest costs.

The downgrade reflects trade friction and high borrowing costs, with the fund warning of further downside risks from tariff hikes.

Trump is currently pushing to extend tax cuts introduced in 2017 and add further tax incentives—moves that Gopinath and other economists suggest could widen the fiscal gap further.