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12/3/2021, 4:15 PM (Source: TeleTrader)
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IMF calls on Fed to speed up tapering

The International Monetary Fund (IMF) urged the United States Federal Reserve to speed up the reduction of its asset purchases due to high inflation.

"We see grounds for monetary policy in the United States — with gross domestic product close to pre-pandemic trends, tight labor markets, and now broad-based inflationary pressures — to place greater weight on inflation risks as compared to some other advanced economies including the euro area," the IMF said in a blog post. "It would be appropriate for the Federal Reserve to accelerate the taper of asset purchases and bring forward the path for policy rate increases," it added.

The Fed started tapering in November but insisted that the move did not mean it is close to raising interest rates. This week, Fed Chair Jerome Powell admitted it will be "appropriate" to consider speeding up the tapering process at the bank's December meeting.

Baha Breaking the News (BBN) / NP