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IMF’s Gopinath sees risk of de-anchoring U.S. inflation expectations -Breaking

by Mike Robinson

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© Reuters. Gita, the International Monetary Fund Director (IMF), is the Economic Counsellor. She also serves as the Director of the Research Department. Interview with Reuters. May 23, 2022 in Davos. REUTERS/Arnd Wiegmann

NEW YORK (Reuters – The Federal Reserve may not be able to maintain inflation levels above current projections. However, there are concerns about inflation expectations “de-anchoring” according to Gita Gupinath on Wednesday.

Current projections about the path of interest rates suggest that inflation will be above the Fed’s 2% target for a while, said Gopinath at an online conference hosted by Financial Times.

Separately, U.S. Treasury Secretary Janet Yellen stated Wednesday that the current annual rate of inflation at 8% was unacceptable for the United States. However, 2% would be an appropriate target.

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