IMF chief: U.S. inflation is in good shape, the Fed ‘did the right thing.’

Golden Finance reports that International Monetary Fund (IMF) Managing Director Georgieva said the U.S. economy is on track for a soft landing as monetary policy cools inflation without plunging the economy into recession. She also praised the U.S., the world's largest economy, for helping to prop up global growth at a time when other countries are slowing. Georgieva said Tuesday that the Fed was basically ‘right’ to keep interest rates high before cutting them by 50 basis points earlier this month. ‘We are in a very good situation,’ she said in response to a question about U.S. inflation. ‘The U.S. has helped keep the world economy afloat during this very difficult time.’ She also credited emerging markets in Asia with helping to underpin the expansion. She reiterated that the IMF expects the global economy to grow by 3.2 per cent this year and that the IMF will update its forecasts in the World Economic Outlook at its annual meeting next month.