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IMF: US Can’t Grow Its Way Out Of $1T Interest Bill

IMF Managing Director Kristalina Georgieva said U.S. growth cannot deliver the needed fiscal adjustment quickly enough, as net interest on the public debt reached $1.14 trillion in fiscal 2026, exceeding spending on Medicare or the military. Treasury Secretary Scott Bessent has argued that 3 percent growth plus spending restraint can stabilize and reduce the debt, but the IMF forecasts only 2.3 percent growth in 2026 and 2027, while analysts note consistent 3 percent growth is unlikely and 3.3 percent would be required merely to stabilize the debt-to-GDP ratio. [...]