US Economic Growth on the Rise Amid Federal Debt Concerns
The US economy is projected to accelerate with lower unemployment rates, according to the IMF. However, rising federal debts pose stability risks. Strong productivity is aiding growth, but protectionist trade policies may hinder progress. Interest rates may see slight reductions if the job market remains stable.
Devdiscourse News Desk | Washington DC | Updated: 26-02-2026 05:51 IST | Created: 26-02-2026 05:51 IST
- Country:
- United States
The US economy is poised for accelerated growth, as noted by the International Monetary Fund (IMF), despite looming concerns over large federal debts.
IMF projections show the US economy expanding by 2.4% in the fourth quarter of 2026 compared to the previous year. Unemployment is expected to decline to 4.1% in 2026, with inflation aiming for the Federal Reserve's 2% target by 2027.
Kristalina Georgieva, IMF's managing director, stated that the Fed could potentially reduce interest rates if the job market remains robust. Despite robust productivity growth, the US faces hurdles due to protectionist trade policies and increasing federal debt.
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