"IMF Issues Strong Warning to US Over Soaring Debt and Spending"

The International Monetary Fund (IMF) has warned that the exceptional performance of the US economy is partly due to unsustainable fiscal policy, with overspending risking reigniting inflation and undermining global financial stability. The US deficit spending, driven by Covid-related stimulus and infrastructure investments, is expected to push public debt to 114% of GDP by 2033. Treasury Secretary Janet Yellen has downplayed concerns, citing projections of low net interest expenses, but the IMF cautioned that something will have to give if interest rates remain elevated.