IMF says tax cuts boosting US now but will hurt growth later

The International Monetary Fund believes the U.S. economy will post solid growth this year and next, helped by tax cuts. But then it says growth will slide as huge budget deficits drag on growth.

In its annual assessment of the U.S. economy, the IMF says growth will hit 2.9 percent this year and 2.7 percent next year, significant increases from last year’s 2.3 percent expansion. However, after an initial boost from the tax cut package, the IMF forecasts growth will slow, dropping to 1.4 percent in 2023.