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IMF warns Trump’s policies could fuel inflation and prevent rate cuts

The global organization forecasts some improvement in the world economy but says Trump's plans cloud the outlook.

The Financial District of Lower Manhattan in New York City
The Financial District of Lower Manhattan in New York City (AN/J. Heilprin)

WASHINGTON (AN) — U.S. President-elect Donald Trump's push to lower taxes, impose tariffs and deregulate businesses hang over the International Monetary Fund's forecast for modest growth and less inflation.

IMF's forecast on Friday calls for 3.3% growth in the world economy for 2025 and 2026, a steady improvement from 3.2% in 2024 but down from the 3.7% a year average in the 2000s and 2010s.

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