Job data hasn't shown the loosening needed to slow inflation and a higher share of long-term debt has blunted tighter monetary policy so far, the IMF said. "This creates a material risk that the Federal Reserve will have to raise the policy rate by significantly more than is currently expected to return inflation to 2 percent," the IMF report said. (See: MNI INTERVIEW: Companies' Contribution To US Inflation Falling)
The IMF chief urged lawmakers to end the debt limit crisis that creates "a self-inflicted injury" to the world economy. The fund's report also said that "the last few years have seen U.S. fixed income markets prove to be insufficiently resilient under stress" and after the SVB collapse "prudential requirements should be made more stringent for mid-sized banks, subjecting them to similar requirements as larger banks."
Source: IMF