IMF Sees US Fed in Position to Cut Interest Rates This Year

IMF - WASHINGTON  - The International Monetary Fund said on Friday it continues to believe that the Federal Reserve could start cutting interest rates later this year and should stay cautious, even as a fall in U.S. June consumer prices raises expectations for an earlier rate cut.

IMF spokesperson Julie Kozack told reporters at a regular news briefing that the disinflation process was underway in the United States. Kozack spoke after the release of a report showing that the U.S. Consumer Price Index fell 0.1% in June, marking its first monthly drop in four years.

Read Also: Oil Falls After US Fed Governor Says No Rush to Cut Interest Rates