IMF says Federal Reserve is appropriately keeping close eye on data
TLT•The IMF said the Federal Reserve is appropriately monitoring economic data as it shapes monetary policy, after holding its benchmark rate at 3.75% to 4.00%. US third-quarter growth was the fastest in a year, while September inflation accelerated and broadened.
1. IMF backs data focus
IMF spokesperson Julie Kozack said the Federal Reserve was appropriately remaining data dependent while acknowledging the continued strength of the US economy and upside risks to inflation. She said the Fed should remain focused on price stability and act as needed to bring inflation down.
2. Growth and inflation
The Commerce Department reported that the US economy grew at its fastest pace in a year in the third quarter, as consumers maintained robust spending and businesses increased investment in AI. Economists said strong growth and data showing inflation accelerating and broadening in September bolstered the argument for a December rate increase. The Fed left its benchmark rate in the 3.75% to 4.00% range on Wednesday.
3. Productivity gains
Kozack said US growth was supported by consumption, investment and productivity gains, with output per hour growing 2.5% per year. She said those gains were not widely shared, particularly in technology, and the US should work to broaden them.
