IMF warns of upside inflation risks, prompting U.S. central bank to consider holding rates higher and dimming soft-landing prospects.
The International Monetary Fund (IMF) has warned of upside inflation risks, driven by elevated service-sector costs and exacerbated by too much government spending and forces of deglobalization. This could prompt the U.S. central bank to hold interest rates higher for longer, and consequently, dim prospects for a soft landing. The IMF predicts that inflation across the world, including in the U.S., could remain high, leading to longer-term interest rate increases.
July 16, 2024
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