The report highlights the economic recovery that the country experienced after the pandemic thanks above all to the stimulus measures, which made it possible to recover employment, activity and demand and reduce poverty levels.
But he also warns that this strong rebound, together with the “exhaustion” of activity, the increase in energy prices and supply problems have led to a significant acceleration in inflation, a sharp increase in prices and wages. And he points out that price pressure spread rapidly over the economy.
For the Fund, the priority policy must be to “immediately stop” the growth of prices and wages “without precipitating a recession” and understands that price stability requires a more restrictive monetary policy, like the one already being carried out by the Federal Reserve.
The Fund insists, as it did in its June 26 review, on the need for the Fed is transparent in announcing its movements and upcoming decisions.
In these new forecasts for the US, the Fund expects inflation of 6.6% for the year as a whole (it was 8.6% in May) and seems confident in the effectiveness of the measures being taken when calculating a consumer price index for 2023 of 1.9%.
Secondly, the IMF also once again asks US politicians for greater ambition to undertake reforms.
In this sense, regrets the inability of some reforms to be approved by Congressand calls for urgent measures to improve productivity, encourage innovation and development and commit to clean energy.
On this last point, ask “more determination” by the US Administration to facilitate a smooth transition to a low-emissions economy.
In any case, he warns that many of the risks that plagued the US economy are now a reality and many problems are already systemic. In this sense, he points out that new concerns related to the Russian invasion of Ukraine and isolation by China are added to the problems of the supply chain.
and maintains that inflation went from being a risk to a reality that causes, in turn, other systemic risks on the economy of the country and the world.
Source: Ambito
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