While the effects of monetary tightening feed through to economic activity and prices with a certain time lag, the International Monetary Fund (IMF) and other international organizations have forecast that inflation rates in the United States and Europe will fall next year.
However, they have also projected that the growth rates for these economies will fall significantly due to the effects of monetary tightening, and that some economies will see negative growth. Unemployment rates are expected to rise in line with an easing of labor market conditions. Federal Reserve Chair Jerome Powell stated that this situation "will also bring some pain to households and businesses.