Gopinath of IMF requested us to curb fiscal deficit, FT report

May 21 (Reuters) – Geeta Gopinath, the first Deputy Managing Director of the International Monetary Fund, said that American fiscal deficit is very large and the country needs to deal with its “ever growing” debt burden, according to an interview published by the Financial Times on Wednesday.

Gopinath told FT that the US was still influenced by the “very high” trade policy uncertainty, such as President Donald Trump’s administration attacked China back and attacked the US-UK economic deal.

In April, the IMF reduced its American development forecast on the influence of American tariffs, as well as its American development forecast, while warning that further trade tensions would slow down and the development would slow down.

Gopinath told FT, “It is perfectly positive that there are less average tariff rates than the people we have accepted. But there is a very high level of uncertainty, and we have to see what the new rates will be.”

These comments came when Trump is proposing to expand the deduction and add new tax breaks in 2017.

Moody’s last week put the US sovereign credit rating down due to concerns about the country’s growing, $ 36 trillion debt stack last week.

The rating agency cited gradual US administration and Congress failure to agree to reversing the trend of large annual fiscal deficit and rising interest costs. (Reporting by Gursimran Kaur in Bengaluru; editing by Jamie Freed)