IMF to release new US economic policy prescriptions next week

WASHINGTON, Feb 19 (Reuters) - The International Monetary Fund said on Thursday it will release a long-awaited initial annual review of U.S. economic policies under the Trump administration on February 25, including assessments of fiscal, trade and current account deficits and a broad assessment of the dollar's value.

IMF spokesperson Julie Kozack told a regular press briefing that despite recent dollar depreciation, the global lender views the dollar to be central to the international monetary system as it continues to dominate trade invoicing, international reserves, borrowing and global payments.

"When we look at a more historical context, the current level of the dollar against major currencies is close to its historical average over the past decade," Kozack said. "Currency markets can be volatile, and it's, of course, important not to read too much into day-to-day movements in currencies."

IMF Managing Director Kristalina Georgieva will hold a press conference after concluding the "Article IV" consultations with U.S. Treasury Secretary Scott Bessent and other Trump administration officials on February 25, Kozack said.

The IMF last issued U.S.-specific policy prescriptions in 2024, calling on then-President Joe Biden's administration to raise taxes to curb rising debt levels that threatened to erode robust growth and progress in controlling inflation.

U.S. deficits have continued at high levels since President Donald Trump returned to office in January 2025, due in part to tax cuts passed by Republicans last year.

The Congressional Budget Office estimated last week that these tax cuts would keep annual deficits at an average 6.1% of GDP over the next decade, unusually high for a peacetime economy, with public debt reaching 120% of U.S. GDP by 2036, eclipsing its post-World War Two high in 2030.