IMF: Fed may not hit 2% inflation goal until late 2027

The International Monetary Fund said the Federal Reserve's return to its 2% inflation objective is now likely to slip to the end of 2027, later than its previous mid-2027 timeline, as mounting inflation risks keep policymakers wary on interest rates. U.S. price pressures have intensified amid higher tariffs and rising energy costs. The IMF expects global oil inventories to drop to 7.5 billion barrels in July, the lowest level in five years, compared with about 8 billion barrels before the war in Iran. The conflict has curbed oil output by roughly 14 million barrels per day. The outlook for oil prices will hinge on whether the Strait of Hormuz can be reopened.