IMF calls on Fed to formally explain policy normalisation strategy
Fund also warns use of Fed funds rate could "pose challenge" amid balance sheet reduction
The International Monetary Fund has called on the Federal Reserve to provide a "formal" account of how it plans to normalise monetary policy and wind down its $4.3 trillion balance sheet after the bank concludes its quantitative easing programme this year.
The IMF also cautioned that using the Fed funds rate – its benchmark interest rate – to signal monetary policy could "pose a challenge" for the US central bank once rates begin to rise.
"Normalisation of the Fed's balance sheet over the medium
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