IMF's Recommendations for Tackling Inflation and Spending Cuts

The IMF is urging the Biden administration to cut spending to balance the US debt load and help the Federal Reserve fight inflation. Inflation has been more persistent than expected, with prices rising 5.6% over last year in March. The US government's debt load is projected to exceed the peak of the pandemic by 2027, with the US debt as a percentage of GDP estimated to stand at 135% in 2028. The IMF argues that fiscal restraint would help rebuild fiscal coffers, fight climate change, and minimize uncertainty and volatility. House Republicans are demanding spending cuts in exchange for raising the nation's borrowing limit, but the White House has said it won't negotiate on paying for what the government already agreed to spend.