IMF believes US inflation is 'narrowing'
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The International Monetary Fund releases its predictions about the future of the US economy.
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International Monetary Fund Managing Director Kristalina Georgieva
The IMF's Managing Director Kristalina Georgieva said that the IMF is aware that the path to avoiding a recession in the US is "narrowing."
"We are conscious that there is a narrowing path to avoiding a recession in the US. We also have to recognize the uncertainty of the current situation," Georgieva said.
The IMF expects the US economy to slow down as COVID-19 takes its toll on the economy, in addition to the war in Ukraine which has resulted in global inflation and resource shortages.
"Further negative shocks would inevitably make the situation more difficult," Georgieva added.
Read more: US Treasury Secretary admits failure to predict inflation risk
IMF's confidence in US Fed
Georgieva said the IMF is confident that the US Federal Reserve will succeed in curbing inflation.
"We are confident the Fed will be effective in bringing inflation down," Georgieva told a virtual press briefing.
"This is important not just for the US but also for the global economy," the IMF chief added.
Read more: Putin: US inflation result of ‘unprecedented’ money-printing
May inflation projected to be 'elevated' by W. House
The White House projected earlier this month that US inflation was still "elevated" in May despite hopes that a pivotal report set to be released later this week will show that price hikes have been mitigated.
Consumer prices in the United States, the world's largest economy, have been on a sharp increase, the sharpest in more than four decades, as gas prices are reaching record highs daily after the US and the West drove Russia out of the energy market in light of the Ukraine war as well as the ongoing cuts in the supply chain brought upon by the Covid-19 pandemic.
The Labor Department will release consumer price data for May and economists are projecting that the monthly increase will accelerate after slowing down in April when the Consumer Price Index posted an 8.3% year-on-year increase.
"We expect the headline inflation number to be elevated," White House Press Secretary Karine Jean-Pierre told reporters traveling with President Joe Biden on Air Force One.
