The International Monetary Fund (IMF) has significantly lowered its 2025 U.S. growth forecast to 1.8%, down from 2.7% in January, blaming rising trade tariff uncertainties, BBC reported.

Despite the downgrade, US markets rebounded after early-week losses triggered by President Trump’s attack on Federal Reserve Chair Jerome Powell, whom he called a "major loser" for resisting rate cuts.  

As stated by BBC,  IMF’s chief economist stressed the need for public trust in central banks, stating, " People must remain confident that central banks will act to control inflation ."

The warning comes amid global economic instability affecting investor sentiment and policymaking.