Would you like to receive notifications on latest updates of the following headlines?

IMF Predict US Fed in Position to Cut Interest Rates Later this Year

POSTED ON July 13, 2024 •   Business      BY Abiodun Saheed Omodara
A case of meat is pictured at a butcher shop at Reading Terminal Market after the inflation rate hit a 40-year high in January, in Philadelphia, Pennsylvania, US, February 19, 2022. l Credit: REUTERS

The International Monetary Fund stated on Friday that it still believes the Federal Reserve may begin to decrease interest rates later this year and should remain cautious, despite a drop in US June consumer prices leading to expectations of an earlier rate cut, according to Reuters.

IMF representative Julie Kozack informed journalists at a routine press briefing that the disinflation process was underway in the United States.

Kozack's comments followed the release of a report indicating that the US Consumer Price Index declined by 0.1% in June, marking its first monthly decrease in four years.

"We support the Fed's approach to monetary policy, which is based on data and caution. We also anticipate that the Fed will be able to lower rates later this year, and that assessment remains unchanged," said Kozack.

Kozack also acknowledged that US growth has been "exceptionally robust" and that substantial federal spending on COVID-19 relief, infrastructure, clean energy, and semiconductors would have a lasting positive impact on the US economy.

However, Kozack reiterated the IMF's longstanding recommendation for the United States to address its growing debt burden.

"At present, the fiscal deficit is too high, and given the strength of the economy, it is time to take action to decisively reduce the debt-to-GDP ratio.

This will necessitate a comprehensive set of fiscal measures," Kozack remarked.
The IMF now projects that US net interest payments on federal debt are expected to reach 3.2% of gross domestic product in fiscal 2024, ending on Sept. 30, up from 2.4% in fiscal 2023 due to higher interest rates.

According to Kozack, this ratio will "remain elevated even in the medium term" due to increased deficits and debt levels.

READ ALSO
German eye Nigeria's mineral wealth as foreign direct investments surge
BY Abiodun Saheed Omodara April 3, 2025 0

Ongoing initiatives to draw in Foreign Direct Investments (FDIs) seem to be bearing fruit, as certai...

READ ALSO
FG signs $174.6M agreement with UNIDO to enhance Nigeria's industry
BY Abiodun Saheed Omodara April 3, 2025 0

The Federal Government and the United Nations Industrial Development Organisation (UNIDO) have enter...

READ ALSO
FG signals tough stance on underdeveloped Oilfields, calls for strategic IOC investments
BY Abiodun Saheed Omodara April 2, 2025 0

The Federal Government expressed its worries on Tuesday about the growing number of idle and underde...

READ ALSO
Fuel prices expect to fall below N750 by Year-End - NIPSS
BY Abiodun Saheed Omodara April 2, 2025 0

The National Institute for Policy and Strategic Studies (NIPSS) has said that with Dangote Refinery...

READ ALSO
CBN's strategic policies lead to significant increase in Nigeria's Net FX reserves
BY Abiodun Saheed Omodara April 2, 2025 0

Nigeria's net foreign exchange reserves (NFER) stood at $23.11 billion at the conclusion of the prev...

READ ALSO
NSIA reports ₦3.74Trn profit, celebrating 12 years of continuous profitability
BY Abiodun Saheed Omodara April 1, 2025 0

ABUJA, Nigeria - THE Nigeria Sovereign Investment Authority (NSIA) reported generating approximately...

READ ALSO
Insurance leaders advocate for AfCFTA adoption to drive economic progress
BY Abiodun Saheed Omodara March 21, 2025 0

Stakeholders within the insurance sector have urged operators to capitalize on the African Continent...

READ ALSO
Nigeria's Debt Soars: To exceed N155 Trillion by 2025 amidst economic strain
BY Abiodun Saheed Omodara March 21, 2025 0

The United Nations Conference on Trade and Development (UNCTAD) has indicated that many countries, p...

OUR CHANNELS:

Lagos faces severe traffic chaos as Independence Bridge repairs begin after Sallah holiday
BY Abiodun Saheed Omodara April 3, 2025 0

LAGOS, NIGERIA - Lagos residents faced a challenging situation yesterday as they returned to work fo...


FG signs $174.6M agreement with UNIDO to enhance Nigeria's industry
BY Abiodun Saheed Omodara April 3, 2025 0

The Federal Government and the United Nations Industrial Development Organisation (UNIDO) have enter...


U.S. shows highest anxiety over AI Job loss amidst technological advancements
BY Abiodun Saheed Omodara April 3, 2025 0

Despite its advanced status, research indicates that the United States of America (USA) has the high...


Bayelsa communities threaten to halt oil production over security contract dispute
BY Abiodun Saheed Omodara April 3, 2025 0

BAYELSA, Nigeria - Nigeria’s struggling oil output may be on the brink of another crisis as co...


NITDA Partners Afrovision technologies to bridge job gap for Nigeria’s Tech Talent
BY Abiodun Saheed Omodara April 3, 2025 0

In an effort to tackle the ongoing challenge of job placement for Nigeria’s expanding tech tal...


Falana advocates for accountability and rule of law
BY Abiodun Saheed Omodara April 3, 2025 0

Human rights Lawyer, Femi Falana (SAN), has called on Nigerians to seek accountability from their le...


FG signals tough stance on underdeveloped Oilfields, calls for strategic IOC investments
BY Abiodun Saheed Omodara April 3, 2025 0

The Federal Government expressed its worries on Tuesday about the growing number of idle and underde...


OpenAI valuation hits $300 billion after SoftBank-led fund
BY Abiodun Saheed Omodara April 3, 2025 0

The Japanese telecommunications company, alongside a group of investors, has recently announced yet...


Fuel prices expect to fall below N750 by Year-End - NIPSS
BY Abiodun Saheed Omodara April 3, 2025 0

The National Institute for Policy and Strategic Studies (NIPSS) has said that with Dangote Refinery...


Nigeria imposes N20m fine, 10-Year Jail Term for Ponzi scheme offenders
BY Abiodun Saheed Omodara April 2, 2025 0

The Securities and Exchange Commission (SEC) has stated that promoters and operators of Ponzi scheme...


More Articles

Load more...

Menu