IMF advises Fed caution ahead of Warsh policy meeting
The IMF expects inflation to hit its target by late 2027. It urges the Fed to stay cautious as Kevin Warsh prepares for his first policy meeting this month.
The IMF urged the United States Federal Reserve to maintain caution on interest rates during a press briefing on Thursday afternoon. The International Monetary Fund cited persistent upside inflation risks from energy price shocks and the pass-through of higher tariff costs. This guidance arrives as the central bank prepares for its first policy meeting led by new Fed Chair Kevin Warsh.
### Inflation Target Pushed to 2027 The IMF now forecasts that inflation will return to the Fed's 2% target by the end of 2027. This update represents a delay from the previous estimate of mid-2027. IMF spokesperson Julie Kozack noted that policy actions must be carefully calibrated to incoming economic data.
