UN financial institution sounds the alarm over Biden’s reckless spending as ballooning national debt shows no signs of slowing.
The International Monetary Fund (IMF) warned that the Biden administration’s rampant spending and the soaring U.S. debt pose “significant risks” to the global economy and threaten to continue more high inflation.
“The exceptional recent performance of the United States is certainly impressive and a major driver of global growth, but it reflects strong demand factors as well, including a fiscal stance that is out of line with long-term fiscal sustainability,” the IMF wrote in its latest World Economic Outlook last Tuesday.
“This raises short-term risks to the disinflation process, as well as longer-term fiscal and financial stability risks for the global economy since it risks pushing up global funding costs,” it continued. “Something will have to give.”
The Washington-based UN institution went on to say that the U.S. is on track to record a fiscal deficit of 7.1% in 2025 – more than triple the level in other advanced economies.
Vitor Gaspar, director of the IMF’s fiscal affairs department, likewise criticized America’s “loose fiscal policy.”
“Loose fiscal policy in the United States exerts upward pressure on global interest rates and the dollar. It pushes up funding costs in the rest of the world, thereby exacerbating existing fragilities and risks,” he said.
“This calls for a cautious and gradual approach to easing by the Federal Reserve,” he added.
But the Biden regime is showing no signs of heeding the IMF’s warning.
The Biden administration last month proposed a gargantuan $7.3 trillion budget for fiscal year 2025, the New York Post reported.
If approved, the Office of Management and Budget (OMB) estimates the national debt would surge to $45.1 trillion — or 105.6% of Gross Domestic Product (GDP) — by 2034 under the plan.
Additionally, just days after the IMF’s warning was published, the House of Representatives, led by Democrats and RINOs, passed a $95 billion foreign aid spending package for Ukraine and Israel.
Meanwhile, the latest Consumer Price Index (CPI) report revealed inflation remained elevated last month at 3.8%, prompting Federal Reserve Chairman Jerome Powell to announce last week that it will likely delay expected rate cuts until data shows inflation moving back down.
The IMF sounding the alarm about Biden’s reckless spending is a major signal the government should immediately take steps to reduce the $34 trillion national debt.
But that won’t happen as long as the Uniparty is in charge.