The International Monetary Fund on Tuesday modestly upgraded its outlook for the world economy, but warned of ongoing risks including persistent inflation and geopolitical turmoil. 

The Washington-based institution said in its latest World Economic Outlook that global gross domestic product will grow by 3.2% this year – which represents a 0.1 percentage point bump from its January forecast – and expand at that same pace in 2025.

“Despite gloomy predictions, the global economy remains remarkably resilient, with steady growth and inflation slowing almost as quickly as it rose,” said Pierre-Olivier Gourinchas, the IMF’s chief economist, in a blog post.

The latest figures suggest the U.S. economy is likely to grow 2.7% this year and 1.9% in 2025.

JAMIE DIMON WARNS INFLATION, INTEREST RATES MAY REMAIN ELEVATED

Still, Gourinchas cautioned that while inflation trends are promising, “we are not there yet.” 

The IMF outlook comes one week after the Labor Department reported that inflation rose 3.5% in March, the highest level since September 2023, amid a resurgence in gasoline and rent costs. It marked the third straight month that inflation came in hotter than expected, underscoring the difficulty of taming price growth. 

Other parts of the report also pointed to stubborn price pressures within the economy. Core prices, which exclude the more volatile measurements of food and energy, climbed 0.4%, as they did in January and February, for an annual gain of 3.8%. Those figures are also higher than estimates.

SILVER LINING OF HIGHER INTEREST RATES: SAVINGS ACCOUNT RATES

“Somewhat worryingly, progress toward inflation targets has somewhat stalled since the beginning of the year,” Gourinchas said. “This could be a temporary setback, but there are reasons to remain vigilant.”

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The fund also issued a warning to the U.S. about the astronomic level of government spending, which it called “out of line with what is needed for long-term fiscal stability.”

The U.S. national debt topped $34 trillion in January after a burst of spending by President Biden and Democratic lawmakers and is well on its way to surpassing $35 trillion. But that massive amount of spending – though it has helped to propel the economy – also risks reigniting inflation and undermining financial stability worldwide by increasing global funding costs.

“Something will have to give,” the IMF said.

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During his “My Take,” Tuesday, “Varney & Co.” host Stuart Varney discussed a potential “deep state” effort to derail Donald Trump’s second term, if he’s re-elected, after former British Prime Minister Liz Truss warned the 45th president about the power of government bureaucrats.

STUART VARNEY: Liz Truss was Britain’s prime minister. She lasted only 49 days.

Writing in today’s Wall Street Journal, she says she was done in by Britain’s deep state.

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Her editorial is a warning to Donald Trump. 

If he’s re-elected, says Truss, the deep state will come after him even more fiercely than in his first term.

Truss is a conservative, and in her first days in office she introduced a growth plan. Shocking.  

Britain’s deep state prefers big government. They are all too often committed leftists. 

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Her growth plan was sabotaged.

Her warning is that the same thing will happen if Donald Trump gets a second term.

Trump wants to expand oil and gas production. 

Do you think the bureaucrats at the Energy Department will go for that without a fight? 

They are climate guys. How about vast subsidies for electric vehicles? 

Trump’s not keen, but the environmental protection agency is gung ho for anything green. 

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They’ll keep promoting and defending the Green New Deal forever.

Tax cuts? No way. Spending cuts? Absolutely not. School choice? 

Never forget what the deep state teachers’ union did during the pandemic. 

Then there’s the Justice Department, which orchestrated the charges that keep Donald Trump tied up in court in the middle of a presidential election campaign. 

They’re not going to give up.

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Truss’ warning is a reminder that government bureaucrats on both sides of the Atlantic have real power.

They’re not afraid to use it to impose their own view of the world, regardless of our elected officials.

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Many borrowers currently struggling with student loan payments would benefit from enrolling in an income-driven repayment plan, according to a recent Student Debt Crisis Center (SDCC) survey.

Roughly three out of four borrowers who make $75,000 or less annually and would benefit from the SAVE plan are not currently enrolled in the plan, the survey said. Moreover, 38% of these borrowers are at risk of defaulting on their student loan payments six months from now and could be missing an opportunity to find debt relief in existing programs. 

President Joe Biden’s Saving on Valuable Education (SAVE) plan could lower borrowers’ monthly payments to zero dollars, reduce monthly costs in half and save those who make payments at least $1,000 yearly. This new IDR plan was announced after the Supreme Court struck down Biden’s student loan forgiveness plan. 

“These survey results are a reflection of what borrowers have experienced these past six months since repayment restarted,” SDCC President and Founder Natalia Abrams said. “We have come so far in advocating for necessary relief to millions of borrowers, and seeing the Biden Administration act is great. However, communication of these vital resources is crucial so borrowers know help is available for them right now. If borrowers do not know the available resources, they will miss relief that can lower their monthly payments, cancel their debt entirely, and so much more.”

If you have private student loans, you could consider lowering your monthly payments by refinancing your loans to a lower rate. Visit Credible to speak with a personal loan expert and get your questions answered.

AMERICANS LIVING PAYCHECK TO PAYCHECK OWN 60% OF CREDIT CARD DEBT: SURVEY

More than half of borrowers contacting their student loan servicers with questions about resuming payments came away with unanswered questions, according to the SDCC survey. Moreover, a quarter of borrowers don’t trust the information they get from their servicer, and 75% said the information they got was inaccurate or incomplete.

Every student loan borrower is assigned a loan servicer to help them navigate repayment options, including income-driven repayment (IDR), which can make payments more affordable. 

In November, the Department of Education withheld $7.2 million in payment to student loan servicers over several billing errors that triggered a delinquency status for borrowers as repayments picked up again at the start of October. The department said that loan servicer MOHELA failed to send billing statements on time to 2.5 million borrowers, with some receiving them within only seven days of their payment date. Servicers are required to send billing statements to borrowers at least 21 days before their due date. 

“I regularly hear from borrowers that they are experiencing inaccurate information or none at all from their loan servicers,” SDCC Managing Director Sabrina Calazans said. “As a student loan borrower myself, I know firsthand how frustrating and harmful these communication errors can be. Borrowers need more communications coming directly from the Department of Education, given their lack of trust in their respective service providers.”

If you’re having trouble making payments on your private student loans, you won’t benefit from federal relief. You could consider refinancing your loans for a lower interest rate to lower your monthly payments. Visit Credible to get your personalized rate in minutes.

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Over $136 billion of student loans have been forgiven to more than 3.7 million Americans, even as the Supreme Court blocked Biden’s original plan for forgiveness.   

The latest block of forgiveness impacts borrowers, such as teachers, nurses, firefighters, and other individuals who earned forgiveness after 10 years of public service, the White House said in a statement. As much as $5 billion of student debt will be forgiven under the latest announcement, bringing the total number of people who have gotten their debt erased to over 3.7 million Americans.  

Starting in February, borrowers with as few as 10 years of payments who initially took out $12,000 or less for college had their remaining debts zeroed as long as they were enrolled in the SAVE plan. As many as 6.9 million borrowers have already enrolled in the SAVE Plan as of early January, with more than 3.5 million receiving at least $130 billion in student loan relief.  

Additionally, the Biden Administration has doubled down on a new forgiveness plan. The plan seeks to bring relief for borrowers whose balances exceed what they originally borrowed, who first entered repayment long ago, who are eligible for relief but have not applied for it, or who attended programs or institutions that failed to provide sufficient financial value and financial hardships. Regulation for this plan could be ready by May, with enrollment opening as soon as this summer or fall, according to a recent Forbes article.

If you’re struggling with private student loan debt, you could consider refinancing to a lower interest rate. Visit Credible to speak with a student loan expert and get your questions answered.

SECURE 2.0: OPTIONAL PROVISIONS KICK IN TO HELP RETIREMENT SAVERS WITH EMERGENCIES AND STUDENT LOAN DEBT

Have a finance-related question, but don’t know who to ask? Email The Credible Money Expert at [email protected] and your question might be answered by Credible in our Money Expert column.

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