Friday, 31 Oct 2025
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA
logo logo
  • World
  • Politics
  • Crime
  • Economy
  • Tech & Science
  • Sports
  • Entertainment
  • More
    • Education
    • Celebrities
    • Culture and Arts
    • Environment
    • Health and Wellness
    • Lifestyle
  • 🔥
  • Trump
  • VIDEO
  • House
  • White
  • ScienceAlert
  • Trumps
  • Watch
  • man
  • Health
  • Season
Font ResizerAa
American FocusAmerican Focus
Search
  • World
  • Politics
  • Crime
  • Economy
  • Tech & Science
  • Sports
  • Entertainment
  • More
    • Education
    • Celebrities
    • Culture and Arts
    • Environment
    • Health and Wellness
    • Lifestyle
Follow US
© 2024 americanfocus.online – All Rights Reserved.
American Focus > Blog > Economy > IMF warns of rising US recession risk and defends Fed rate policy
Economy

IMF warns of rising US recession risk and defends Fed rate policy

Last updated: April 22, 2025 7:50 am
Share
IMF warns of rising US recession risk and defends Fed rate policy
SHARE

The risk of a recession in the US is on the rise, according to the International Monetary Fund (IMF). President Donald Trump’s trade war is pushing the global economy towards a significant slowdown, the IMF warned in its latest World Economic Outlook. The IMF cut nearly a percentage point off its growth forecast for the US this year and downgraded its outlook for all other G7 nations, as well as major economies like China, India, Brazil, and South Africa.

The IMF emphasized the urgent need for countries to resolve their trade tensions to avoid further damage to growth prospects. The abrupt increase in tariffs and the uncertainty surrounding them could significantly slow global growth if sustained. The Global Financial Stability Report also highlighted increased risks to markets since the White House’s tariff shift, with a sell-off in equities and US government debt contributing to a tightening of financial conditions.

IMF’s chief economist, Pierre-Olivier Gourinchas, stated that the central forecast is that the US and global economies will avoid a recession this year. However, the probability of a recession in the US has increased to nearly 40%, up from 25% in the previous World Economic Outlook. Gourinchas emphasized the importance of resolving trade tensions to avoid further escalation in tariffs and trade tensions.

The IMF’s outlook includes higher inflation in the US as a result of tariffs, with consumer prices expected to grow by 3% this year, one percentage point higher than expected. Gourinchas reiterated the importance of central bank independence in keeping inflation in check, supporting the Federal Reserve’s decision to hold interest rates steady as it assesses the impact of tariffs.

See also  Frequent emergency care during pregnancy could signal greater risk for severe maternal morbidity

The IMF’s forecast for global growth has been revised down to 2.8% for this year and 3% for 2026, reflecting a slowdown from 2024. The fund warned of a major negative shock from rising trade barriers, with only a few countries seeing growth upgrades among the G20 nations. The US remains the fastest-growing G7 economy, but with lower growth expectations.

The IMF highlighted the importance of easing current trade policies and forging new trade agreements to improve growth prospects. The negative impact of trade barriers could hinder competition and innovation in the long term, weighing on the global economic outlook. Policymakers are urged to address trade tensions to avoid further escalation and mitigate the risks of a global recession.

TAGGED:DefendsFedIMFpolicyraterecessionRisingRiskWarns
Share This Article
Twitter Email Copy Link Print
Previous Article How science can help you train your puppy How science can help you train your puppy
Next Article Father kidnapped his own 2-month-old, tossed her over a fence during getaway attempt: prosecutors Father kidnapped his own 2-month-old, tossed her over a fence during getaway attempt: prosecutors
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Popular Posts

Questlove on Why He Couldn’t Get Pavarotti for His ‘SNL’ Music Doc

Since its inception in 1975, "Saturday Night Live" has been a platform for showcasing music…

May 2, 2025

LeBron & Bronny James Make History, First Father-Son Duo To Share NBA Court

The James family has just made history in the NBA! LeBron and Bronny James shared…

October 22, 2024

SK makes 3 predictions for today’s SRH vs KKR IPL 2025 match; No. 1 is about Abhishek Sharma

Sunrisers Hyderabad (SRH) will take on Kolkata Knight Riders (KKR) in match number 68 of…

May 25, 2025

Is Anything More Complicated Than Sisterhood? Esther Freud, Sister of Bella, Reflects on a Lifelong Bond

The Complex Relationship Between Sisters: A Reflection Recently, I received a call from a stranger…

July 2, 2025

Can social expectations of masculinity be bad for cardiovascular health?

Cardiovascular disease continues to be a prominent cause of illness and death in both the…

October 25, 2024

You Might Also Like

Cigna Profits Hit Nearly  Billion Despite Rising Costs
Health and Wellness

Cigna Profits Hit Nearly $2 Billion Despite Rising Costs

October 30, 2025
What is a merchant bank?
Economy

What is a merchant bank?

October 30, 2025
Fed Cuts Rates by a Quarter Point, as Expected
Economy

Fed Cuts Rates by a Quarter Point, as Expected

October 30, 2025
Fed’s Standing Repo Facility hits record high as policy meeting outcome looms
Economy

Fed’s Standing Repo Facility hits record high as policy meeting outcome looms

October 30, 2025
logo logo
Facebook Twitter Youtube

About US


Explore global affairs, political insights, and linguistic origins. Stay informed with our comprehensive coverage of world news, politics, and Lifestyle.

Top Categories
  • Crime
  • Environment
  • Sports
  • Tech and Science
Usefull Links
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA

© 2024 americanfocus.online –  All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?