The International Monetary Fund (IMF) has revised down its economic growth forecast for the United States for this year, lowering it to just 1.8% from the previously projected 2.7% in January.
According to the IMF, the United States will be among the most affected advanced economies due to the uncertainty caused by trade tariffs and broader economic policy tensions.
In the same report, the IMF also downgraded the growth outlook for the United Kingdom, which continues to feel the lingering effects of Brexit and ongoing political uncertainty. The UK’s projected growth has similarly declined compared to earlier forecasts.
Meanwhile, US financial markets have begun to recover after Monday’s major losses, which were partly triggered by former President Donald Trump’s criticism of Federal Reserve Chair Jerome Powell. Trump called Powell a “major loser” for not cutting interest rates, raising concerns about political interference in monetary policy.
In response, Gita Gopinath, Chief Economist of the IMF, emphasized that it is “critical” for central banks to maintain independence and do whatever is necessary to control inflation and preserve economic stability.
She added that political tensions and the imposition of tariffs represent a serious risk to the global economy.
