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Federal Reserve at Odds with IMF over Interest Rates

Federal Reserve at Odds with IMF over Interest Rates

Janet Yellen, the Federal Reserve chairwoman, today repeated her view that the U.S. government will be in a position to raise interest rates this year. Today, at a speech given to the City Club of Cleveland in Ohio, she said it was appropriate to begin “normalizing” monetary policy this year, as she was confident the U.S. economy would grow steadily for the remainder of 2015. However, and as previously, she quantified her assertions by saying that “the course of the economy and inflation remains highly uncertain.”

The International Monetary Fund (IMF) revealed only yesterday that they had cut the forecast for global economic growth by 0.2% because of the U.S. economy’s current outlook. This is in sharp contrast to the effect of recent crises in Greece and China, which the IMF said would have only a marginal effect on the global forecast (the IMF’s forecasts for China and Europe remained unchanged).

At the end of her speech, Janet Yellen invited questions, one of which concerned the opposing views of the IMF. Her response? Just “part of the spectrum of opinion.” If you are becoming increasingly concerned about current U.S. economic policies, please Like & Share this post.

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