The global lender says the US may have to suffer a recession in order to tame rising prices
The United States may have to endure economic “pain” in order to rein in rampant inflation, the head of the International Monetary Fund (IMF) said on Friday, noting that a downturn might be the “necessary price to pay” for recovery.
Speaking to reporters during a Friday press conference, IMF Managing Director Kristalina Georgieva predicted a rough ride for the US economy, which is experiencing decades-high inflation with soaring prices for a number of staple goods.
“Success over time [in lowering prices] will be beneficial for global growth, but some pain to get to that success can be a necessary price to pay,” she said, soon after the IMF slashed its growth forecast for the US by nearly a full percentage point, down to 2.9%.
Read more
US makes confession about skyrocketing food and energy prices
Georgieva added that the United States faces a “narrowing path to avoiding a recession,” but that tackling inflation must be the “top priority,” even if it means an economic slow-down.
Nigel Chalk, the number two official at the IMF’s Western Hemisphere branch, also warned of the risk of a recession, but predicted that any downturn would be short-lived, pointing to robust savings and labor markets in the country.
The comments from the international lender come after the US Federal Reserve pushed through the highest interest rate hike in 28 years last week, in what Fed chair Jerome Powell described as an effort to counteract inflation. He has since acknowledged, however, that the central bank does not have control over prices for many key goods, including food and gas, explaining “There’s really not anything that we can do” about rising oil and grain costs.
An 18-year-old man armed with at least three guns roamed through a northwestern New Mexico community firing randomly at cars and houses Monday, killing three people and injuring six others including two police officers before he was killed, authorities said. The shootings occurred around 11 a.m. in Farmington, a city of about 50,000 people near …
Before real estate agent Kouri Richins allegedly poisoned her husband, Eric Richins, to death, the two had sparred over a $3.75 million home — which is now in contract. Located in Heber City, Utah — Kouri, 33, allegedly argued with Eric, 39, about her plans to purchase and flip this 20,000-square-foot home just days before …
In the half-century since its debut in 1972, The National Institute for Automotive Service Excellence (ASE) has become the standard bearer for certifying professionals in the automotive industry. Like certifications in any other industry, becoming an ASE Certified Master Technician or getting other credentials can help auto industry professionals advance their careers. Also like other certifications, getting those credentials takes time, work, and money. With the current nationwide mechanic shortage still raging, there is a pressing need for qualified technicians. […]
This content was republished with permission from WTOP’s news partners at Maryland Matters. Sign up for Maryland Matters’ free email subscription today....