International Monetary Fund (IMF) Managing Director Kristalina Georgieva urged U.S. policymakers to raise tax revenue and cut spending now rather than wait until the next economic crisis forces them to take action against the widening national deficit.

“Now, when there is a strong economy, it is the time to arrest and reverse this trend,” the IMF chief told reporters at a press conference in Washington, D.C. on June 27.

She said the government should look for ways to strengthen its fiscal position in the medium term, such as raising tax revenue, addressing structural imbalances, and reforming entitlement programs, such as social security and unemployment benefits, that account for almost half of the federal budget.

She said some legislation enacted under both the Trump and Biden administrations would have a “lasting positive impact in reshaping the US economy,” but such legislation needs to be complemented with “actions to put public debt to GDP on a decisive downward path.”

The warnings come after the Congressional Budget Office (CBO) predicted earlier this month that the deficit was likely to hit $1.9 trillion this year.

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