Economics
US Economy Will ‘Narrowly Avoid’ Recession in 2022 and 2023, IMF Says
- US economy’s path to skirt recession is narrowing, MD says
- Fed’s plan to get rates to 3.5% to 4% is ‘correct policy’
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The US economy is likely to slow in 2022 and 2023 but will “narrowly avoid a recession” as the Federal Reserve implements its rate-tightening plan to curb inflation, the International Monetary Fund said.
“The policy priority now must be to expeditiously slow wage and price growth without precipitating a recession” the IMF said in a statement Friday. “This will be a tricky task,” as global supply constraints and domestic labor shortages are likely to persist, and the war in Ukraine creates additional uncertainties, it said.