IMF: US interest rates will need to be higher for longer

Kristalina Georgieva, Managing Director of the International Monetary Fund, has crossed the wires with the following comments:

• US economy has proven resilient in face of significan fiscal and monetary tightening -article iv review statement.
• Expects US growth to be around 1.2% in 2023, picking up momentum later in 2024.
• US unemployment to rise slowly to close to 4.5% by end-2024.
• Strength in US demand and labor market means a persisten inflation problem.
• Core US inflation will continue to fall during 2023, but remain 'materially above' 2% fed target throughout 2023 and 2024.
• Will be essential for fed to communicate carefully on policy path.
• US interest rates will need to be higher for longer.
• US needs to do more to lower the public debt.
• We are very keen to see a u.s. debt ceiling resolution as soon as possible