The International Monetary Fund (IMF) has released a statement praising the United States’ recent agreement to raise the debt ceiling and reopen the government. The IMF acknowledged that this averted a potential crisis that could have had significant global repercussions.

Despite this positive assessment, the IMF emphasized that the US still faces considerable fiscal challenges. These include:

• High levels of government debt
• An aging population
• Rising healthcare costs

The IMF urged US policymakers to adopt a comprehensive and credible medium-term fiscal plan. This plan should aim to reduce the debt-to-GDP ratio while protecting essential social programs and promoting economic growth.

“A more predictable and sustainable fiscal policy is essential for bolstering confidence and supporting the US economic recovery,” the IMF stated. They also suggested that reforms to entitlement programs and the tax system should be considered as part of a broader fiscal strategy.

The IMF’s assessment highlights the ongoing need for fiscal responsibility in the United States, even after the immediate threat of a debt default has been averted.