Dialing down uncertainty, reducing vulnerabilities, and investing in innovation, can help deliver durable economic gains

Higher US tariffs have so far had a smaller impact globally than expected, but it would be “premature and incorrect” to conclude they have had no effect on economic growth, the International Monetary Fund said Tuesday.

The U.S. and global economies will grow a bit more this year than previously forecast as the Trump administration’s tariffs have so far proved less disruptive than expected, the International Monetary Fund said Tuesday.

Global economic growth is projected to decelerate to 3.2% this year from 3.3% in 2024 and skid further to 3.1% in 2026, according to a new report from the IMF.

The economic outlook remains fairly cloudy and Wednesday’s economic projections by FOMC members shouldn’t be taken as gospel. During Powell’s press conference following the publication of the June SEP,

U.S. homebuilder sentiment jumped to a six-month high in October amid hopes that declining mortgage rates would stimulate demand for housing and help reduce an inventory overhang that has hampered new housing construction.

The International Monetary Fund lifted the global growth forecast for this year and next as the impact of the trade tariffs has been less severe than initially expected but warned that the policy uncertainty remains high.

Fed officials see more rate cuts in the remainder of 2025 than they did previously—a shift that suggests they are growing increasingly worried about the economic outlook and the weakening labor market.