IMF Says US Inflation Won’t Hit 2% Target Until 2027

[nihalsari]

The International Monetary Fund said Wednesday that US inflation is unlikely to return to the Federal Reserve’s 2% target until early 2027, signaling that meaningful interest rate relief may still be years away. The assessment came as part of the IMF’s first Article IV review of the Donald Trump administration and stands in contrast to recent White House optimism about borrowing costs easing sooner.

While the IMF expects US growth to remain resilient at 2.4% in 2026, that strength reduces urgency for rate cuts. Persistent inflation combined with steady expansion reinforces the case for “higher-for-longer” interest rates. For markets betting on rapid monetary easing, the message is clear: the path back to 2% inflation will likely be gradual, not immediate.

[ed]

i love how the imf says the economy is "resilient" while i’m literally checking the price of eggs like they’re a luxury asset