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IMF chief economist says Fed reduction in rate guidance is 'entirely appropriate'
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- IMF chief economist says Fed reduction in rate guidance is 'entirely appropriate' By Andrea Shalal Fri, June 26, 2026 at 11:51 PM GMT+7 2 min read By Andrea Shalal
- "That is something that is not tenable, of course," Gourinchas told Reuters in an interview, adding that such rigid guidance had proven to be very costly when U.S.
- "So I think moving away from these strong forms of forward guidance is entirely appropriate.
IMF chief economist says Fed reduction in rate guidance is 'entirely appropriate' By Andrea Shalal Fri, June 26, 2026 at 11:51 PM GMT+7 2 min read By Andrea Shalal
WASHINGTON, June 26 (Reuters) - The International Monetary Fund's chief economist on Friday said Federal Reserve Chair Kevin Warsh's plan to reduce forward rate guidance on monetary policy was "entirely appropriate," although central banks would always need to provide some long-term guidance for markets.
Pierre-Olivier Gourinchas, who leaves his post to return to academic life next week, said strong forward guidance had gotten "really bad press" because it committed central banks to some future action, regardless of economic developments.
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