IMF President: The Federal Reserve May Have Further Room for Rate Cuts

Jinse Finance reported that IMF President Kristalina Georgieva stated that the Federal Reserve may further cut interest rates this year, but must carefully balance between signs of slowing economic growth and stalled progress in reducing inflation. Georgieva pointed out that the US economy has demonstrated resilience, achieving 3.8% growth in the second quarter, exceeding most expectations. Although hiring is not as strong as before, consumer demand remains robust. "The overall situation is not very clear. In this environment, considering the stagnation of the disinflation process and the possibility of a slight economic slowdown, the Federal Reserve must strike the right balance." Georgieva said that the IMF is closely monitoring the latest data, adding that if service sector inflation is compounded by broader tariff cost pass-through, the US inflation outlook will become "more concerning."