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

International Monetary Fund

No 2023/208, IMF Staff Country Reports from International Monetary Fund

Abstract: This 2023 Article IV Consultation highlights that 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, boosted initially by a drawdown of pent-up savings and, more recently, by solid growth in real disposable incomes. The strength of demand and in labor market outcomes has contributed to a persistent inflation problem. While goods inflation has moderated and shelter price growth is expected to slow in coming months, nominal wage increases are feeding into non-shelter services prices. Fiscal policy is expected to be procyclical in 2023 on a general government basis, following a significant fiscal contraction in 2022 due to the unwinding of major pandemic related fiscal measures and higher tax receipts. 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.

Keywords: liability positions vis-à-vis nonresident; money market rate; article IV discussion; consumer demand; headline PCE inflation; Inflation; Labor markets; Wages; Renewable energy; Commercial banks; Global; North America (search for similar items in EconPapers)
Pages: 81
Date: 2023-06-15
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