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IMF: The US Federal Reserve should focus more on inflation risks
The International Monetary Fund warned today, Friday, of increasing inflationary pressures, especially in the United States, and of the uncertainty caused by the emergence of the new strain of the Corona virus, Omicron, saying that officials of the US Federal Reserve (Central Bank) should focus more on inflation risks.
In a post on Friday, the International Monetary Fund's chief economist Gita Gopinath and head of the IMF's Monetary and Capital Markets division, Tobias Adrian, warned that the resurgence of the pandemic and the Omicron strain had dramatically increased uncertainty about the global economic outlook.
But they added that the strength of the recovery and the extent of underlying inflationary pressures varied widely across countries, and that policies to deal with them could be adjusted to the unique circumstances of each economy.
In the United States, where consumer prices hit a 31-year high in October, they said, there are grounds for monetary policy to give more weight to inflation risks than in other advanced economies, including the eurozone.
