The Strategist

IMF urges US to resolve debt ceiling issue

06/16/2023 - 03:18

The International Monetary Fund (IMF) management urged the United States to find a long-term solution to the nation's debt ceiling issue.

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The fund said in a published analysis of the US economy that "(Executive) Directors have called for a long-term solution (to the issue) of the state debt ceiling."

In order to achieve the national debt's downward trajectory, the U.S. authorities will also need to take "more definitive action" in the medium term, according to IMF management. Tax cuts and the elimination of structural inequalities in the social security and Medicare insurance programs are specifically included among these initiatives.

A few days before a potential US default, which might happen on June 5th, US President Joe Biden signed a measure to temporarily raise the national debt ceiling until 1 January 2025.