IMF Warns Trump Tax Bill Complicates Cutting Debt in Medium Term

The International Monetary Fund warned that President Donald Trump’s tax bill nearing final passage on Thursday is likely to complicate the task of reducing the US fiscal deficit and debt burden in the coming years.

The IMF, whose mandates include global economic surveillance, has consistently said the US needs to reduce public borrowing over time to start decisively slashing debt relative to gross domestic product, a common measure of debt sustainability, spokeswoman Julie Kozack said.

The tax bill “appears to run counter to reducing federal debt over the medium term,” Kozack told reporters at a briefing in Washington on ...