Kenny Porcari, chief market strategist at Slatestone Wealth, said this data shouldn’t come as a surprise to anyone on “Maria Bartiromo’s Wall Street.”
of international monetary fund The governor slightly upgraded his outlook for the global economy on Tuesday, but warned of continuing risks, including sustained inflation and geopolitical turmoil.
The Washington-based agency said in its latest World Economic Outlook that global gross domestic product (GDP) will grow 3.2% this year, up 0.1 percentage points from its January forecast, and will grow by 2025. is expected to expand at the same pace.
IMF Chief Economist Pierre-Olivier Grinchat said in a blog post: “Despite the pessimistic forecasts, the global economy remains remarkably resilient, with stable growth and inflation rising at about the same rate. It’s slowing down,” he said.
The latest figures suggest that us economy It is expected to grow by 2.7% this year and 1.9% in 2025.
Jamie Dimon warns that inflation, interest rates may remain high
International Monetary Fund (IMF) staff participate in a press conference during the IMF and World Bank Annual Meetings in Washington, DC, April 16, 2024. (Photographer: Samuel Corum/Bloomberg via Getty Images / Getty Images)
Still, Gourinsha warned that while the inflation trend was promising, “we’re not there yet.”
The IMF’s outlook comes a week after the Labor Department reported that inflation rose 3.5% in March, the highest level since September 2023, on the back of soaring gas and rent prices. Inflation was higher than expected for the third month in a row, highlighting the difficulty of containing price increases.
Other parts of the report also point to stubborn price pressures within the economy. Core prices, which exclude more volatile food and energy measures, rose 0.4% in January and February, as they did in January and February, and rose 3.8% for the year. These numbers are also higher than expected.
High interest rate: ordinary deposit interest rate
A worker polishes welds on a safe being manufactured at Liberty Safe Company in Payson, Utah, March 22, 2022. (Photo by George Fry/Getty Images/Getty Images)
“What is somewhat worrying is that progress towards the inflation target has stalled somewhat since the beginning of the year,” Grinchas said. “While this may be a temporary setback, there is reason to remain vigilant.”
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The fund also warned the United States about astronomical levels of government spending, saying it is “deviating from what is needed for long-term fiscal stability.”
US national debt exceeded $34 trillion in January after explosive spending by the government president biden And including Democrats, it is on track to exceed $35 trillion. However, although such huge spending has contributed to promoting the economy, it also poses the risk of reigniting inflation due to an increase in the global cost of funds and undermining financial stability around the world.
The IMF said “something has to give.”
