The International Monetary Fund (IMF) says it is seeing growing signs of strain in the U.S. economy. Fourth-quarter growth is now expected to come in below the earlier forecast of 1.9%, IMF spokesperson Julie Kozack said on Thursday.
Kozack noted that the ongoing government shutdown has made it difficult for the IMF to fully assess economic conditions. The lack of updated data has limited its ability to evaluate the U.S. outlook.
Because of the shutdown, the IMF has postponed its annual “Article IV” policy consultations with U.S. officials. The discussions cannot move forward without the required preparatory work, and no new date has been scheduled.
The IMF also said U.S. inflation is gradually moving closer to the Federal Reserve’s 2% target. However, tariffs and other risks could push prices higher. Even with stable inflation expectations, elevated costs continue to affect certain parts of the population.
Several challenges are weighing on U.S. economic activity, including slower immigration flows, ongoing tariffs, and broader policy uncertainty, Kozack added.
