IMF’s Gourinchas: The fight against inflation by central banks will last until 2024

 The International Monetary Fund's (IMF) Chief Economist Pierre-Olivier Gourinchas made expressed his take on the US inflation and Fed rate hike outlook, in an interview with Reuters late Tuesday.

Key quotes

“The fight against inflation by central banks will last until 2024.”

“Inflation will not return to target in 2023, but it will be closer in 2024.”

“The IMF forecasts the unemployment rate in the United States will rise by two percentage points between 2023 and 2024.”

“A 5.5% unemployment rate in the United States would be a fairly benign outcome in exchange for returning inflation to the 2% target.”

“The magnitude of future Fed rate increases is less important than achieving the goal of returning to a neutral or contractionary stance.”