IMF: The Federal Reserve should keep interest rates unchanged at least until the end of the year

IMF President stated that the Federal Reserve should keep interest rates unchanged at least until the end of the year. IMF believes that the United States is the only country with economic growth above pre-pandemic levels, and strong growth indicates upward risks for inflation. IMF predicts that the core personal consumption expenditure price index will reach 2.5% by the end of 2024, earlier than the Federal Reserve's forecast for 2026. IMF's assessment of the downward trajectory of inflation is more optimistic, based on signs of cooling in the labor market and weakening consumer demand. Georgieva emphasized the need for clear evidence that inflation is falling to the 2% target before the Federal Reserve cuts interest rates