US Federal Reserve pressed to take care with stimulus pullback
WASHINGTON (AFP) - Global finance chiefs stepped up calls on Saturday for the Federal Reserve to take care in moving to cut its stimulus, as emerging countries wrestle with financial turbulence.
Numerous countries at the annual meeting of the International Monetary Fund and the World Bank said the US central bank's expected tightening had already added challenges to their struggling economies, stirring capital outflows and pressing their currencies lower.
The IMF's steering committee, the International Monetary and Financial Committee, itself cautioned the Fed and other central banks in advanced economies when they begin "normalising" their ultra-low interest rates and easy-money policies.
"The eventual transition toward the normalisation of monetary policy... should be well-timed, carefully calibrated, and clearly communicated," the IMFC said.