IMF Predicts US Inflation to Remain Above Target Until 2027

The International Monetary Fund (IMF) has projected that U.S. inflation will not meet the Federal Reserve's 2% target until early 2027. According to NS3.AI, this forecast suggests that interest rate cuts are unlikely in the near term. The IMF also points to significant fiscal risks in the U.S., such as ongoing federal deficits and increasing debt levels, which could maintain elevated interest rates. This scenario presents challenges for risk assets, including cryptocurrencies, which had anticipated earlier rate relief.