IMF says U.S. ‘soft landing’ amid Ukraine war pressures entails downside risks

FILE PHOTO: The IMF logo is seen outside the headquarters building in Washington
FILE PHOTO: The International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S., September 4, 2018. REUTERS/Yuri Gripas/File Photo

March 31, 2022

WASHINGTON (Reuters) – Achieving a “soft landing” for the U.S. economy amid new inflationary pressures prompted by Russia’s invasion of Ukraine will be a challenging task for the Federal Reserve and will entail “significant downside risks,” IMF spokesperson Gerry Rice said on Thursday.

Rice also told a regular news briefing that amid the food and energy supply crunches prompted by the conflict, countries should avoid policy moves that would worsen the situation. They should avoid hoarding commodities, imposing export restrictions or price controls and avoid launching new trade disputes, he said.

(Reporting by David Lawder)