The International Monetary Fund warns of an increase in inflationary pressures in the United States


Today, Friday, the International Monetary Fund warned 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: “The US Federal Reserve (Central Bank) officials 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 US, 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 other advanced economies, including the eurozone.

They added, “It would be appropriate for the Federal Reserve to accelerate the process of reducing asset purchases and pave the way for increasing interest rates,” in confirmation of what Chairman Jerome Powell said a few days ago.


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