The U.S. national debt has reached a historic high of $40.3 trillion, representing a gross debt-to-GDP ratio of approximately 126%. During the IMF annual meetings in Bangkok, Managing Director Kristalina Georgieva stated that economic growth, while helpful, cannot deliver the necessary adjustments fast enough, and that reducing the budget deficit remains essential. Net interest payments already account for 15% of federal spending and roughly 20% of revenue. The Treasury Department responded by questioning the IMF’s forecasting record. Treasury Secretary Scott Bessent argues that 3% growth could solve the problem, but the Congressional Budget Office Director deemed this implausible, placing the required growth rate at 5% to 6%.
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