Federal Reserve Chair Jerome Powell indicated on Tuesday that policymakers would postpone interest rate cuts in light of persistently high inflation readings. He noted the lack of significant progress in addressing inflationary pressures, suggesting that the Fed may maintain steady rates for an extended period if needed.
However, the International Monetary Fund (IMF) took a contrasting stance, issuing a direct critique of US policymakers on Tuesday. The IMF suggested that the recent strong performance of the US economy, compared to other advanced economies, was partly fueled by an unsustainable fiscal policy. This policy included substantial deficit spending driven by COVID-related relief packages, ambitious investments in infrastructure and clean energy, and escalating interest costs.