United States: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the United States

IMF Staff Country Reports, June 15, 2023

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Canonical URL: United States: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the United States

The US economy "has proven resilient in the face of the significant policy tightening that took place in 2022."
Consumer demand has "held up particularly well," initially "boosted by a drawdown of pent-up savings" and more recently "by solid growth in real disposable incomes."
The strength of demand and labor market outcomes "has contributed to a persistent inflation problem."
Sectoral inflation dynamics:
- "Goods inflation has moderated."
- "Shelter price growth is expected to slow in coming months."
- "Nominal wage increases are feeding into non-shelter services prices."

Fiscal policy:
- "Fiscal policy is expected to be procyclical in 2023 on a general government basis."
- This follows "a significant fiscal contraction in 2022 due to the unwinding of major pandemic related fiscal measures and higher tax receipts."
Monetary and financial stability actions:
- "The Federal Reserve provided systemic liquidity support, including a new facility to reduce the need for banks to liquidate assets in times of stress."
- These actions "have stabilized deposit outflows and restored confidence to the banking system."

Subjects: Commercial banks, Environment, Financial institutions, Inflation, International organization, Labor, Labor markets, Monetary policy, Prices, Renewable energy, Wages
Keywords: article IV discussion, Commercial banks, consumer demand, Global, headline PCE inflation, Inflation, Labor markets, liability positions vis-à-vis nonresident, money market rate, North America, Renewable energy, Wages