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IMF Expects US Inflation to Fall to 2% in 1H Next Year, Limited Room for Rate Cuts This Year
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The International Monetary Fund (IMF) said on Thursday that US inflation is expected to fall back to the Federal Reserves 2% target in the first half of next year, but policymakers have limited room to cut interest rates this year. The IMF expects the US to deliver only one rate cut by the end of 2026, citing a lack of scope to lower policy rates over the coming year. More substantial monetary easing would require a marked deterioration in the labor market outlook, while inflationary pressures remain contained, including no rise in short-term inflation expectations driven by higher oil and commodity prices. The IMF also noted that, given the current policy stance is close to neutral, coupled with rising energy prices and their pass-through effects on core inflation, as well as upside risks to global commodity prices, the return of inflation to target could be further delayed, leaving limited room for rate cuts in 2026. (me/s) This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. Auto-translated by AI AASTOCKS Financial News |
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