DETROIT: The International Monetary Fund on Friday said U.S. interest rates will likely need to remain higher for longer to tame inflation, and Washington needs to tighten fiscal policy to bring down its federal debt.

Biden, McCarthy looking to close US debt ceiling deal for two years

The IMF in a statement issued after its "Article IV" review of U.S. policies said that the U.S. economy has proved resilient in the face of tighter monetary and fiscal policy, but this means that inflation has been more persistent than anticipated.