{"id":64386,"date":"2026-02-26T12:00:51","date_gmt":"2026-02-26T09:00:51","guid":{"rendered":"https:\/\/coinengineer.net\/blog\/?p=64386"},"modified":"2026-02-26T09:41:42","modified_gmt":"2026-02-26T06:41:42","slug":"imf-warns-fed-rates-stay-high-crypto-at-risk","status":"publish","type":"post","link":"https:\/\/coinengineer.net\/blog\/imf-warns-fed-rates-stay-high-crypto-at-risk\/","title":{"rendered":"IMF Warns: Fed Rates Stay High, Crypto at Risk"},"content":{"rendered":"

The latest IMF<\/strong> Article IV review highlights that the US federal budget deficits, projected at 7\u20138% of GDP, and consolidated debt, expected to reach 140% of GDP by 2031, pose growing stability risks. This essentially explains why interest rates<\/strong> are likely to stay high for longer, limiting aggressive rate cuts. The fund describes the current account deficit as \u201cvery large\u201d and suggests spending cuts over tariffs to correct trade imbalances; meaning short-term capital inflows remain constrained.<\/p>\n

President Trump, in his State of the Union address, praised falling mortgage rates and claimed annual costs have dropped by around $5,000. Here, IMF data confirms that despite optimism, rates will remain elevated.<\/p>\n

When will US inflation decline?<\/p>\n

US inflation is expected to reach the Fed<\/strong><\/a>\u2019s 2% target only by early 2027, restricting the likelihood of aggressive rate cuts in the near term.<\/p>\n

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