IMF sees mounting strains in U.S. economy, Q4 growth slowing

Investing.com -- The International Monetary Fund (IMF) is observing increasing signs of strain in the U.S. economy, with fourth-quarter growth expected to decelerate from its previous forecast of 1.9%, IMF spokesperson Julie Kozack said Thursday.

The ongoing government shutdown has complicated the IMF’s ability to properly assess U.S. economic performance due to a lack of data, Kozack told a regular news briefing.

The IMF has postponed its annual "Article IV" policy consultations with U.S. authorities because the shutdown prevented necessary preparatory work. No new date has been set for these discussions.

According to the IMF, U.S. inflation is moving toward the Federal Reserve’s 2% target, but tariffs and other factors present upside risks. Despite anchored inflation expectations, higher prices continue to cause pain for certain sectors of society.

Several factors have been weighing on U.S. economic activity, including slowing immigration inflows, tariffs, and broader policy uncertainty, the IMF spokesperson noted.

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