IMF urges big economies to cut spending and debt now
The International Monetary Fund warned that advanced economies must reduce deficits and debt quickly, as delays would make the task harder later.
By Standard Topic. AI-generated from the reporting listed under Coverage. Published . Updated .
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What happened
The International Monetary Fund issued an urgent call for advanced economies and others to cut government spending, reduce deficits and lower debt levels. Its chief urged the United States and wealthy nations to rein in debt, citing rising debt, global inflation and high energy costs linked to the Iran war. JPMorgan Chase Chairman and CEO Jamie Dimon separately warned at the Economic Club of Chicago that rising government debt poses a risk.
Why it matters
Higher debt and inflation have pushed interest rates to multidecade highs, adding to the burdens of the world's poorest nations.
Timeline
- Oct 14, 9:52 AM ET: The International Monetary Fund issued an urgent call for advanced economies to reduce spending, deficits and debt.
- Oct 14, 10:11 PM ET: Jamie Dimon warned the Economic Club of Chicago that government spending is like heroin and that a global debt reckoning is coming.
Coverage
- IMF chief urges the U.S. and wealthy nations to rein in debt to ease global economic pressure (adn.com)
- Jamie Dimon warns of a global debt reckoning: Government spending is ‘like heroin’ (chicagobusiness.com)
- IMF chief urges wealthy nations to rein in debt to ease global economic pressure (PBS)
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