IMF’s Georgieava: Fed is definitely achieving a soft landing

In an interview with CNN on Tuesday, International Monetary Fund (IMF) Managing Director Kristalina Georgieva said that Americans should "cheer up" about the US economy as inflation falls further in 2024 despite a solid labour market and moderating interest rates, per Reuters.

Key quotes

"People should be feeling good about the economy because they finally would see relief in terms of prices.”

"While that has been painful, especially for small businesses, it has brought the desired impact without pushing the economy into recession.”

"My message to everyone is, you have a job, and interest rates are going to moderate this year because inflation is going down. Cheer up. It is a new year, people.” 

"So we are all better off to find ways to reduce frictions, to concentrate on security concerns that are real and meaningful, and not go willy-nilly in fragmenting the world economy. We would end up with a smaller pie.”

Market reaction 

As of writing, the US Dollar Index was down 0.01% to trade at 102.22 on the day.