The Fund also cut its 2023 real GDP growth forecast to 1.0% from 1.7% on June 24, when it met with US officials for an annual assessment of US economic policies.The Fund also cut its 2023 real GDP growth forecast to 1.0% from 1.7% on June 24, when it met with US officials for an annual assessment of US economic policies.
But it continued to highlight the challenges of high inflation and the steep Federal Reserve interest rate hikes needed to control prices. The Fund said Fed monetary policy tightening should help bring down inflation to 1.9% by the fourth quarter of 2023, compared with a forecast of 6.6% for the fourth quarter of 2022.
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