David Zervos, newly appointed counselor to the Treasury Secretary, said the IMF should check its own forecasting record before criticizing U.S. fiscal policy. He was responding to IMF Managing Director Kristalina Georgieva, who warned that strong U.S. growth alone would not put federal debt on a sustainable path. Zervos cited past misses, including a 2008 world growth forecast of 3% followed by a global contraction a year later, and Argentina's $57 billion bailout before it was basically in default again by 2020. Earlier, Treasury Secretary Scott Bessent said the U.S. could 'grow our way out' of its rising debt-to-GDP ratio after government debt surpassed $40 trillion. Many economists warn that rising interest payments and deficits could trigger a debt spiral, though they are divided on whether a true fiscal crisis is possible.
Summary written by Upside AI from the original article. Read the source for full details.
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