IMF says ECB rate cut “appropriate,” Fed should stay cautious

By Thomson Reuters Jun 6, 2024 | 10:16 AM

WASHINGTON (Reuters) – The International Monetary Fund said on Thursday that the European Central Bank’s rate cut is “appropriate” given declining inflation in the euro area, but that both ECB and Federal Reserve policy makers should maintain a data-dependent approach.

IMF spokesperson Julie Kozack also told a regular news briefing that the U.S. economy needs to slow in 2024 and the Fed should remain cautious in cutting rates.

(Reporting by David Lawder; Editing by Chizu Nomiyama)