IMF says US Fed needs to maintain restrictive monetary policy to support disinflation
TLT•The IMF said the Federal Reserve needs to maintain a restrictive policy stance to bring inflation back to its 2% target. It said high energy prices and the ongoing AI investment boom, not wage growth, were driving US inflation.
1. IMF view on policy
IMF spokesperson Julie Kozack said the Federal Reserve needs to maintain a restrictive policy stance to support disinflation and gradually return inflation to its 2% target. She said the IMF supports the Fed’s focus on price stability and its readiness to act as needed.
2. Inflation drivers
Kozack said US inflation was being driven by high energy prices and the ongoing AI investment boom, rather than wage growth. She said it was too early to determine whether recent developments and stock price volatility in the AI sector would ease inflationary pressures.
