Bloomberg Tax
Free Newsletter Sign Up
Bloomberg Tax
Welcome
Go
Free Newsletter Sign Up

US Economy to Narrowly Avoid Recession in 2022-23, IMF Says (1)

June 24, 2022, 9:17 PM

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.

The Fed’s plan of quickly getting its benchmark rate to 3.5% to 4% “should create ...