IMF spokeswoman Julie Kozack said at a regular news conference that the fund expects the US economy to slow for the rest of the year, and that this will be reflected in its updated World Economic Outlook in October.
She explained that International Monetary Fund Core U.S. PCE is expected to end 2024 at 2.5 percent and return to the Fed’s 2 percent target by mid-2025, with the latest data showing less upside risk to this path.
“This means we see the beginning of an easing cycle, as the Fed says, as needed,” Kozak added. “However, the upside risks to inflation, while abating, have not completely disappeared, and the Fed will have to continue to gauge the pace and extent of rate cuts in light of future economic data.”
