IMF sees steady US growth, calls for deficit reduction

WASHINGTON, Feb 25 (Reuters) - The International Monetary Fund on Wednesday called on the United States to reduce its fiscal deficits while predicting steady growth in 2026 and an uncertain path on inflation.

The IMF said in its first policy prescriptions for the Trump administration that U.S. deficits would remain in the 7% to 8% of GDP range in coming years, more than twice the levels targeted by U.S. Treasury Secretary Scott Bessent, and consolidated general government debt will reach 140% of GDP by 2031.