The International Monetary Fund (IMF) said that the United States economy maintains a steady momentum and that inflation in the country will reach the Federal Reserve’s 2% target by the end of 2027. At a regular briefing, IMF spokesperson Julie Kozak commented on the Fed’s recent decision to keep the key interest rate unchanged and praised new Fed chair Kevin Warsh’s commitment to achieving price stability. The spokesperson also stressed that the US economic system currently demonstrates notable resilience and stands tall on the global stage.
The IMF’s positive outlook is supported by fresh macroeconomic data showing that US GDP growth in the first quarter was revised up to 2.1% year‑on‑year from an initially reported 1.6%. The Fund notes that the main drivers of this pickup were a rebound in government consumption, a persistently high level of business investment, and strong labor productivity. Although current inflation in the US still exceeds the central bank’s targets, IMF experts expect it to decline steadily and confidently thanks to tight monetary policy.
Given these developments, the IMF called the US regulator’s decision to keep rates on hold fully justified and warranted. Julie Kozak added that any further moves by the Federal Reserve should be taken with the utmost caution and closely calibrated against incoming economic data. Interestingly, the status quo on the funds rate last week was the Fed’s first official monetary policy action taken unanimously under the governance of new Chairman Kevin Warsh.