The comment suggests the IMF sees scope for further policy easing over time, assuming inflation continues to trend lower and labour market conditions remain stable.
On fiscal policy, Georgieva struck a firm tone, saying determined action will be required to put US public debt on a downward path. The IMF has projected persistent deficits and rising debt levels over the coming years, reinforcing concerns about medium-term fiscal sustainability.
She also said the Fund shares the Trump administration’s concern over widening US trade and current account deficits, adding bluntly that the external gap is “too big.” The IMF has warned that sustained large deficits leave the US exposed to shifts in global investor sentiment.
Regarding the recent Supreme Court decision striking down some of former President Trump’s tariffs, Georgieva said the IMF has not yet taken a formal view
