In an interview with CNBC overnight, IMF Managing Director Kristalina Georgieva projected that by the end of the year, Fed would be positioned to lower interest rates. Nevertheless, She emphasized the importance of data-driven decisions, advising against premature action.
“We remain on our projection that we would see, by the end of the year, the Fed being in a position to take some action in a direction of bringing interest rates down,” adding, “But again, don’t hurry until the data tells you you can do it.”
Georgieva also highlighted reasons for optimism regarding the US economy’s future. She pointed out that the US is experiencing less upward pressure on labor costs compared to other regions, which helps in maintaining economic stability without the immediate threat of overheating.
