By WASHINGTON (Reuters) – The U.S. debt path is still sustainable despite steady growth because policymakers have many options to bring debt under control and have an enviable combination of strong growth and easing financial conditions, the International Monetary Fund’s fiscal chief said on Wednesday.
Vitor Gaspar, IMF fiscal affairs director, told a news conference that now was the time for the U.S. to start fiscal consolidation.
“It is growing at about two percentage points of GDP every year. And so from that viewpoint, this path of debt cannot continue forever,” Gaspar said. “We do believe that the situation in the United States is sustainable because the policymakers in United States have access to many combinations of policy instruments that enable them to put the path of public debt under control.”