IMF Chief Says Fed Rate Cuts Are Better Late Than Early
- IMF chief Georgieva says moving too early can reverse gains
- But cautions higher for too long hurts US, global economies
This article is for subscribers only.
The head of the International Monetary Fund said the Federal Reserve and other major central banks face more risks by easing monetary policy too early rather than too late, but stressed the Fed shouldn’t hesitate to cut interest rates when the data says the time is right.
“Central banks need to be guided by data, not by exuberant expectations of markets,” Managing Director Kristalina Georgieva said in a briefing on Thursday. “At this time in the cycle, there is risk of premature loosening.”