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MNI BRIEF: Fed Has Further To Go To Conquer Inflation-IMF Econ

(MNI) WASHINGTON

Central banks have further to go to ensure inflation will come back down to target, IMF Chief Economist Pierre-Olivier Gourinchas said Tuesday, also pushing back against notions the Federal Reserve will be able to pause its rate-hiking cycle sooner despite recent positive signs on inflation.

The Fed should not adjust its 2% inflation target higher, Gourinchas added in Q&A at an Economic Encounters conference hosted by the Embassy of France in Washington, stating that it would have negative repercussions for the central bank's credibility.

The IMF is set to release an update to its World Economic Outlook January 31. (See: MNI INTERVIEW: Minneapolis Fed's Raffo Upbeat On Prices, Growth)

MNI Washington Bureau | +1 202-371-2121 | evan.ryser@marketnews.com
MNI Washington Bureau | +1 202-371-2121 | evan.ryser@marketnews.com

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