The International Monetary Fund released its United States of America: Staff Concluding Statement of the 2023 Article IV Mission report on Friday.

Adam had the rundown, a picture of stumbling growth and inflation slowly returning to target.

The report said tha the Fed’s ten interest rate hikes since last March may not be enough to bring down inflation to the Fed’s 2% target. IMF Managing Director Kristalina Georgieva followed up with a press conference. Offering advice to the Federal Open Market Committee (FOMC):

  • “Inflation remains stubbornly high, PCE is telling us that the job is not quite yet done…Frankly, we need to continue to follow the data and see how much it would take to bring inflation to target,”

Also had comments on the banking crisis, warning that:

  • “Unrealized losses from holdings of long duration securities would increase in both banks and nonbanks and the cost of new financing for both households and corporates could become unmanageable,”
  • “Such a tightening of financial conditions could trigger an increase in bankruptcies [and] worsen credit quality.”
International Monetary Fund (IMF) managing director Kristalina Georgieva