Gita Gobinat, Deputy Managing Director of the International Monetary Fund, warned of the continuing threat of inflation to threaten the US economy, stressing that it is too early for the Federal Reserve to declare victory in the battle against rising prices.
According to Reuters, Gobinat urged the US Federal Reserve to continue raising interest rates in 2023.
In an interview with the Financial Times, Gobinat stressed that it is important for the US central bank to maintain tightening monetary policy until there is a definite and continuous decline in inflation that is clearly reflected in wages and non-food and energy sectors.
And Gobinat added to the newspaper: If you look at the indicators in the labor market and look at the thorny components of inflation, such as inflation in services, then I think it is clear that we have not passed the risk of inflation yet.
The IMF official indicated during the interview that she expects the Chinese economy to suffer strong repercussions in the short term, but its recovery is possible later this year with the recovery of demand.
The minutes of the Federal Reserve's December monetary policy meeting, which was announced on Wednesday, revealed the US Federal Reserve officials' commitment to fighting inflation, as they expect high interest rates to remain unchanged until further progress is made.
At the meeting, when policy makers raised the key interest rate by another half percentage point, they expressed the importance of keeping the tightening policy unchanged, as long as unacceptable inflation rates persisted.
