The U.S. is in danger of a fiscal crisis erupting after a ballooning in deficits in recent years, according to Olivier Blanchard, a senior fellow at the Peterson Institute for International Economics.
Blanchard, a former International Monetary Fund chief economist who typically has a more relaxed fiscal stance, said he is concerned about the attitude in Washington to eye-watering U.S. government deficits.
“In the U.S., I’m very worried because the primary deficits are very large and there’s absolutely no attempt to decrease them in any way, shape or form,” he told the House of Lords Economic Affairs Committee via video link on Tuesday. Primary deficits exclude government debt costs.
He is the latest to warn of a dire trajectory for U.S. debt after sharp increases in the deficit under President Joe Biden and predecessor Donald Trump.
The huge deficit seen last year has caused concern as it comes after a rise…
