WASHINGTON – The U.S. economy is exhibiting initial signs of strain after a period of resilience, marked by moderating internal demand and a deceleration in job growth, the international Monetary Fund (IMF) reported thursday. Together, the IMF cautioned that tariffs imposed by the Trump governance pose a continuing risk of fueling inflationary pressures.
The shift comes as the Federal Reserve aims to bring inflation down to a 2% target. While progress is being made, the IMF warns that existing tariffs could counteract those efforts. ”We see now that some tensions appear. The internal demand is tempered,and the creation of jobs slows down,” stated IMF spokesperson Julie Kozack.
The IMF’s assessment follows a significant downward revision of U.S. employment data, revealing 911,000 fewer jobs created between March 2023 and March 2024 than previously estimated. This suggests a cooling labor market predates the implementation of new commercial rates. Kozack indicated there is room for monetary policy interest rate reductions, but urged caution in their application.
Recent economic volatility stems, in part, from a surge in imports earlier this year as businesses anticipated tariff increases. The IMF emphasized the importance of timely and reliable economic statistics, especially after President Trump dismissed the head of the Labor Statistics Office and nominated an economist from the Heritage Foundation, alleging data manipulation without providing evidence. Kozack declined to comment on the credibility of U.S. official data but affirmed the IMF’s support for transparent economic reporting by all member states.
