IMF Warns U.S. Growth to Slow Sharply Amid Tariff Uncertainty and Political Tensions

International

April 22 — Washington, D.C.: The International Monetary Fund (IMF) has sharply lowered its growth forecast for the United States, warning that the country is expected to suffer the steepest slowdown among advanced economies this year, reported by BBC News. The revised prediction comes amid growing concerns over trade tensions and political pressure on financial institutions.

According to the IMF’s latest update, the U.S. economy is now expected to grow by only 1.8% in 2025, a significant drop from the 2.7% forecast made in January. The slowdown is being blamed largely on the economic uncertainty caused by ongoing tariff disputes and shifting trade policies. These trade conflicts, the IMF says, have cast a long shadow over business investment and consumer confidence.

In the midst of this economic unease, U.S. financial markets are attempting a rebound after falling sharply on Monday. The decline followed former President Donald Trump’s harsh public criticism of Federal Reserve Chairman Jerome Powell, whom he labeled a “major loser” for not cutting interest rates fast enough.

When asked about Trump’s remarks, the IMF’s chief economist stressed the importance of central bank independence. “It is critical,” she said, “that central banks remain free from political influence and do what is necessary to keep inflation in check.”

The UK hasn’t escaped the economic gloom either—its own growth outlook has been lowered, reflecting a wider global slowdown. Still, all eyes remain on the U.S., where political noise and uncertain trade moves continue to shake confidence.

As the world’s largest economy faces growing headwinds, the IMF’s message is clear: economic stability requires steady hands, clear policies, and trust in independent institutions.