ISTANBUL 

International Monetary Fund (IMF) Managing Director Kristalina Georgieva said Thursday that the US Federal Reserve should hold interest rates unchanged until late this year.

Given important upside risks, she said the Fed should keep its policy rates at current levels "until at least late 2024."

Georgieva said the American economy was supported by "labor supply and productivity gains" during the Fed's unprecedented and aggressive monetary tightening cycle in recent years.

"I want to recognize that a lesson we learned from the last years is we are at a time of more uncertainty," she said in a press briefing. "This uncertainty also lies ahead."

"We are confident, however, that the Fed will move through that, and certainly with the same prudence it has demonstrated over the last year," she added.

The IMF also on Thursday released its US Staff Concluding Statement of the 2024 Article IV Mission.

The American economy has proven to be robust, dynamic and adaptable to changing global conditions, while activity and employment continue to exceed expectations and the disinflation process has been considerably less costly than many had feared, according to the statement.

However, the ongoing expansion of trade restrictions and insufficient progress in addressing bank failures last year both pose significant downside risks, it added.

In addition, "downside risks could arise from the complex global geopolitical environment or from a slower path of disinflation and a resulting higher path for interest rates," said the statement.

"Despite the important progress to-date in returning inflation toward its 2 percent goal, the Federal Reserve should wait to reduce its policy rate until at least late 2024," it said, reiterating Georgieva's comments.