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IMF asks US Federal Reserve to delay rate rise | IMF asks US Federal Reserve to delay rate rise |
(35 minutes later) | |
In an unusual move, the International Monetary Fund urged the US central bank to delay any rise in interest rates until 2016. | |
IMF managing director Christine Lagarde said the Federal Reserve should wait to see "more tangible signs of wage or price inflation". | |
The IMF believes that "pockets of vulnerability" in the US economy have emerged. | |
These could cause serious trouble for the wider economy, Ms Lagarde said. | |
She also said that a gradual rise in the US benchmark federal funds rate would be appropriate, while higher rates could cause market volatility. | |
Ms Lagarde added that the IMF recognised the work that the US had done. | |
In the IMF's annual assessment of the US economy, she said rate decisions should be data dependent. | In the IMF's annual assessment of the US economy, she said rate decisions should be data dependent. |
Many Washington watchers have predicted an interest rate rise this year. | |
But recent economic reports have been mixed, including data showing that the US economy shrank an annualised 0.7% in the first quarter. | But recent economic reports have been mixed, including data showing that the US economy shrank an annualised 0.7% in the first quarter. |