Jul
12
Fed Resists IMF Call to Allow Some Overshoot of Inflation Goal
By-
IMF urges Fed to be wary of slowing inflation, policy reversal
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Central bank feared disruptive effect of overshooting target
The Federal Reserve resisted a recommendation by the International Monetary Fund that the central bank be willing to let inflation modestly exceed its target, saying such a move could be counterproductive to its objectives, an IMF report showed.
The IMF last month recommended the Fed accept “some modest, temporary overshooting” of its 2 percent inflation target, given the risk that price increases will slow and the central bank may have to reverse course after raising its benchmark rate in December for the first time since 2006. The IMF made the call in a June 22 statement following the fund’s annual review of the world’s biggest economy…
Fed Resists IMF Call to Allow Some Overshoot of Inflation Goal
