The IMF suggests the U.S. should adopt a more balanced and gradual pace of fiscal consolidation to spur growth, especially given limited room for monetary policy support. U.S. growth is expected to slow to 1.9% in 2013 but could increase to 2.7% in 2014 with moderate fiscal adjustments. The IMF emphasizes the need to repeal the sequester, raise the debt ceiling, and adopt measures for long-term fiscal sustainability. It also highlights the importance of careful communication and timing in exiting monetary policy stimulus and strengthening financial regulations.
documents/EFTA01100704.pdf
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