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IMF says Fed needs to be careful when communicating plans to remove easy monetary policy
The International Monetary Fund’s Executive Board on Thursday said the U.S. Federal Reserve has been “highly effective” at managing the Covid-19 crisis and supporting recovery with its commitment to overshoot a 2% inflation target in the near term. The board, releasing its full report on its annual assessment of U.S. economic policies, said the Fed must carefully communicate its thinking to ensure that the eventual withdrawal of monetary accommodation and asset purchases is orderly and transparent. The IMF has raised concerns that higher U.S. interest rates will drain capital flows from emerging markets at a ... (full story)
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