IMF calls on Fed to formally explain policy normalisation strategy

The Federal Open Market Committee

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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