The IMF cautioned that inflation risks have increased, casting doubt on the likelihood of multiple interest rate cuts by the Federal Reserve. The IMF’s World Economic Outlook update indicated that global disinflation is slowing, with the US lagging behind other major economies in terms of quantitative easing momentum. Despite market expectations of rate cuts in September and November, IMF Chief Economist Pierre-Olivier Gourinchas believes that only one rate cut is appropriate this year due to persistent service and wage inflation. The IMF also lowered its growth outlook for the US economy in 2024, citing cooling consumption and slower-than-expected growth.
