US to Face Steepest Economic Hit Among Advanced Economies, IMF Says
The United States is expected to suffer the steepest economic blow among advanced economies this year due to growing uncertainty fueled by trade tariffs, according to a new forecast released by the International Monetary Fund (IMF). In its latest outlook, the IMF has sharply cut its US growth projection to 1.8% for 2025 — a significant drop from the 2.7% it had predicted in January. The downgrade reflects rising concerns over trade policy instability and political tensions that are beginning to unsettle investors and policymakers alike. Despite the sobering forecast, US financial markets showed signs of resilience on Tuesday, rebounding from Monday’s losses. The earlier dip followed a fresh round of political pressure from President Donald Trump, who publicly lashed out at Federal Reserve Chair Jerome Powell, branding him a “major loser” for not cutting interest rates amid persistent inflation concerns. The IMF’s chief economist stressed the importance of maintaining public trust in central banking institutions. “It is critical that everyone remains convinced that central banks will do what is necessary to bring inflation under control,” she said, underscoring the need for stability and independence in monetary policy decisions.
Admin | 2025-04-22 21:51:54