China News Service, June 25. According to Reuters, the International Monetary Fund (IMF) released its annual assessment report on the 24th, slashing its forecast for U.S. economic growth, as aggressive interest rate hikes by the Federal Reserve cooled demand.
According to the report, the IMF released its annual assessment report on US economic policy on the 24th. The latest forecast of the report is that the US gross domestic product (GDP) will grow by 2.9% in 2022, which is lower than the 3.7% forecast in April.
The IMF also lowered its forecast for U.S. economic growth in 2023 to 1.7 percent from 2.3 percent, and to 0.8 percent in 2024.
IMF Managing Director Georgieva said at a news conference that "the U.S. path to avoiding a recession is narrowing" and the outlook is highly uncertain.
Georgieva said price stability is important to protect U.S. incomes and sustain growth, but consumers may have to go through "some pain" before that can be achieved.
She also said she had discussions with U.S. Treasury Secretary Janet Yellen and Federal Reserve Chair Jerome Powell and had no doubts about their "determination to lower inflation."
The Fed is reported to seek an average inflation target of 2 percent, but U.S. inflation is currently more than three times higher than the Fed's target.