IMF official: America has not passed inflation risk yet

Gita Gobinat, First Deputy Managing Director of the International Monetary Fund, said in an interview with the Financial Times today, Thursday, that the United States has not yet overcome the threat of inflation, and it is too early for the Federal Reserve (US Central Bank) to declare victory in the battle against rising prices.

According to “Reuters”, Gobinat urged the US Central Bank to continue raising interest rates this year

She said that it is important for the US Central Bank to “maintain the tightening of monetary policy” until a “certain and continuous decline in inflation” occurs, which is clearly reflected in wages and non-food and energy sectors.

Also she 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.”

Gobinat indicated in 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.