The International Monetary Fund (IMF) has slightly raised its growth forecast for the US economy this year. However, UN experts point out that interest rates in the US need to be higher to control inflation. The fund is urging Democrats and Republicans in Washington to quickly reach an agreement on the U.S. government’s debt ceiling.

The IMF now expects growth of 1.7 percent this year, compared with 1.6 percent forecast in April. “The US economy has demonstrated resilience,” IMF chief Kristalina Georgieva told a news conference shortly after the updated figures were released. Next year, growth in the world’s largest economy is likely to slow to 1 percent. In April, an additional 1.1 percent was considered. The recession is expected to lead to a small increase in unemployment in 2024, the IMF said.

A deal between Democrats and Republicans on a necessary increase in the debt ceiling is still pending. House Republican Speaker Kevin McCarthy said he would continue to work toward a deal over the coming long weekend. If the debt ceiling is not raised, the US government will formally run out of money on June 1. This will cause major financial unrest worldwide.