FX.co ★ IMF urges urgent fiscal measures as US debt tops $40 trillion

The United States cannot overcome the crisis of rising government debt solely through faster economic growth, IMF Managing Director Kristalina Georgieva said. The fund chief noted that the White House traditionally pins its hopes on a powerful economic upswing, and while strong GDP dynamics do help the budget, relying exclusively on growth to stabilize public finances is unacceptable.

Georgieva reiterated the view of US Treasury Secretary Scott Bessent, who acknowledged that the budget deficit and the total stock of government debt—which has topped a record $40 trillion—are at critically dangerous levels. According to the IMF head, averting a debt crisis will require immediate and tough fiscal measures aimed at cutting excessive spending and restoring order in public finances.

Treasury Secretary Bessent has previously promised to present a detailed plan to reduce sovereign liabilities after the November congressional elections. He said the administration has already made some progress in containing the deficit and will continue to work on the issue, while the White House still hopes that sustained economic growth will be a key tool in easing the debt burden.