Fed Should Alter Its Monetary Policy Framework, IMF Official Says
- Gopinath says central banks face world of more supply shocks
- Fed adopted new framework in 2020 aimed at lifting inflation
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A senior International Monetary Fund official suggested on Friday that the Federal Reserve alter its monetary policy framework to reflect a world of more frequent supply shocks and a greater risk of elevated inflation.
“We’re going to be hit more by supply shocks and therefore monetary policy faces much more serious trade-offs,” International Monetary Policy First Deputy Managing Director Gita Gopinath said. “We have to refine our monetary policy framework.”