IMF warns of global economic challenges amidst inflation and fragile markets.

The International Monetary Fund (IMF) has downgraded its outlook for global economic growth due to chronically high inflation, rising interest rates, and uncertainties resulting from the collapse of two big American banks. The IMF now envisions growth this year of 2.8%, down from 3.4% in 2022 and from the 2.9% estimate for 2023 it made in its previous forecast in January. Persistently high inflation is expected to force the Federal Reserve and other central banks to keep raising rates and to keep them at or near a peak longer to combat surging prices, potentially destabilizing banks that had come to rely on historically low rates.