The International Monetary Fund told reporters Thursday that the United States continues to display solid growth momentum and that inflation is expected to decline to the Federal Reserve's 2% target by the end of 2027.
Speaking at a scheduled news briefing, IMF spokeswoman Julie Kozack discussed the Fund's reading of recent U.S. data in the context of the Fed's choice to leave its key policy interest rate unchanged. Kozack commended the new Federal Reserve chair Kevin Warsh for his commitment to restoring price stability.
Kozack pointed to a revision in official growth figures released Thursday, which showed first-quarter gross domestic product expanding at a 2.1% annualized pace, up from the previously reported 1.6% rate. She also underlined a rebound in government consumption, ongoing strength in investment, and persistently high labor productivity as supporting elements of the growth profile.
Describing the United States as an outlier relative to other economies, Kozack said inflation remains above the Fed's objective but is projected by the IMF to ease over time toward the 2% mark by the close of 2027.
On monetary policy, Kozack said the dynamic between still-elevated inflation and projected declines justified the Fed's decision to keep the policy rate on hold. She emphasized that any future moves by the central bank should be cautious and finely tuned to incoming data.
The Fed's hold on interest rates last week marked the first rate decision under Chair Warsh's leadership.
Key facts from the briefing are straightforward: the IMF sees the U.S. growth trend as solid, it has revised up first-quarter GDP to a 2.1% annualized pace, and it expects inflation to reach the Fed's 2% target by the end of 2027. The Fund also signaled support for the Fed's present pause in policy action while stressing the need for data-dependent caution going forward.