IMF Sees Market Volatility Risk in Fed’s Exit From Record Easing

The International Monetary Fund cautioned that the U.S. Federal Reserve’s exit from unprecedented asset purchases could spur market reactions causing “excessive” interest-rate volatility.

That would have “adverse global implications,” the fund’s board of directors said today in a statement, part of an annual review of the world’s largest economy. “Effective communication on the exit strategy and a careful calibration of its timing will be critical for reducing these risks,” the Washington-based fund said.