TechFlow News, April 2: According to JINSHI Data, the International Monetary Fund (IMF) stated that although U.S. inflation is expected to fall to the Federal Reserve’s 2% target in the first half of next year, policymakers have virtually no room to cut interest rates this year. Based on the IMF’s annual assessment of the U.S. economy, IMF staff project only a single rate cut by the end of 2026. “Overall, staff believe there is limited scope for policy rate reductions over the next year. More substantial monetary easing would require a marked deterioration in the labor market outlook without an increase in inflationary pressures—recent rises in oil and commodity prices have pushed up inflation expectations,” noted IMF Executive Directors in a separate statement. Given that the Fed’s current policy stance is close to neutral, “scope for rate cuts in 2026 is limited, especially considering rising energy prices, the pass-through effects of core inflation, and upward risks to global commodity prices, which could further delay achievement of the inflation target.”
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