The US's blowout debt burden is one piece of a global problem, IMF warns
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The International Monetary Fund (IMF) warns that the US's ballooning debt burden could have a negative impact on the global economy. The IMF's latest Fiscal Monitor report highlights the risks associated with the US deficit, which is projected to reach 7.1% by 2025, more than triple the overspending levels of other advanced economies. The report emphasizes that loose fiscal policy in the US puts upward pressure on global interest rates and the dollar, exacerbating existing fragilities and risks. The IMF also raises concerns about China's deficit and debt levels, stating that how these two economies manage their fiscal policies could have profound effects on the global economy. The Congressional Budget Office projects that US debt will reach 116% of GDP by 2054. The report suggests that bipartisan willingness to cut spending and implement tax hikes across income levels could be potential solutions to address the debt issue.

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https://www.businessinsider.com/us-debt-outlook-borrowing-costs-bond-yields-global-economy-imf-2024-4