IMF's Gopinath

The IMF's Gita Gopinath is weighing in on the US economy and inflation saying:

  • it will be challenging to bring inflation back to Federal Reserve target without turbulence
  • The relevant question is not whether inflation peaked, but whether it will stay significantly above the Fed's target for a long time
  • Based on current projections, US inflation could stay above Fed's target for a long time, there is risk of inflation expectations that the anchoring
  • There is a narrow path for US rates not to go up by much, but risk is the possibility of much a steeper rate increases

Not great news from IMF's Gopinath on US inflation going forward