The Fed's forthcoming rate cuts are "in line" with the IMF's recommendations, said the chief economist of the international monetary fund. "The message from Fed Chairperson Powell today is very much in line with what we are saying," Mr. Gulansha said on the sidelines of the Jackson Hole meeting. "Inflation has been improving and the labour market has shown signs of cooling. If the labour market is no longer fuelling inflationary pressures, then you might ease a little bit on the cooling of aggregate demand and bring the policy rate back closer to neutral." Mr. Guranza said the US should not be complacent that inflation had disappeared, noting that service sector prices were still rising and that the Fed would have to adjust the pace and magnitude of rate cuts in light of forthcoming economic data. "There are still some upside risks to inflation." Mr. Guranza said that while the US economy was growing strongly, the US job market was also clearly cooling, he did not think a recession was imminent and the chances of a soft landing had increased, which remained the IMF's main forecast.