Oddbean

IMF sees ‘bumps’ in path to lower inflation ========== The International Monetary Fund (IMF) warned that upside risks to inflation have increased, casting doubt on the prospect of multiple Federal Reserve interest rate cuts this year. The IMF's latest World Economic Outlook update stated that the momentum on global disinflation is slowing, indicating challenges ahead. The rise in sequential inflation in the US earlier in 2024 has put it behind other major economies in the quantitative easing path. IMF chief economist Pierre-Olivier Gourinchas suggested that one rate cut from the Fed is most appropriate this year, citing stubborn services and wage inflation as complications to achieving lower inflation. The IMF forecasts the rate of disinflation to slow in 2024 and 2025 across advanced economies due to high services inflation and commodity prices. The IMF lowered its growth outlook for the US economy to 2.6% in 2024 due to cooling consumption and slower-than-expected growth at the start of the year. #Imf #Inflation #FederalReserve #InterestRates #EconomicOutlook https://www.cnbc.com/2024/07/16/imf-sees-bumps-in-path-to-lower-inflation.html