IMF expects Fed to raise interest rates
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IMF expects Fed to raise interest rates
The International Monetary Fund (IMF) forecasts that the Federal Reserve (Fed) will start raising interest rates as early as late 2022 as the US economy continues to recover. More fiscal stimulus measures are expected to be implemented in the coming months.
The IMF said the driver of the unprecedented massive monetary and fiscal stimulus as well as vaccination pg gaming against COVID-19 in the past several months The US economy is expected to expand around 7% this year, adding that the reopening will boost inflation caused by higher consumer spending in the coming months.
The IMF also said that if the IMF's economic outlook and fiscal policy assumptions come true, it is likely that The Fed may have to start raising interest rates in late 2022 or early 2023, and will begin cutting limits on its asset purchase program in the first half of the year. 256 ADVERTISEMENT
Kristalina Georgiava, IMF director, said: “Although we haven't seen any signs of an overheating economy, we're not seeing any signs of overheating. But we cannot ignore the risks that remain. including the rapidly rising inflation rate. This will affect the US economy and around the world.”
The IMF has raised its forecast for US economic growth in 2021 to 7%, a steep increase from the previous forecast of 4.6%. US Congress to Pass $2.3 Trillion American Jobs Plan to Invest in Infrastructure and the American Families Plan, a $1.8 trillion bill to help US households suffer the impact of COVID-19.
The IMF also raised its forecast for the US economy in 2022 to 4.9 percent from the previous forecast of 3.5 percent in April. |
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