Fed Should Wait To Hike Until 'clear Signs' Of Inflation Emerge: IMF

By Greg RobbMarketWatch Pulse

The Federal Reserve should hold off raising interest rates until there are "clear signs of wage and price inflation," the International Monetary Fund said Tuesday. In an assessment of the U.S. outlook, the IMF added more detail to its call that the Fed hold steady until the first half of 2016. A first move could tighten conditions so much and stall the economy, the IMF warned. A sudden outbreak in inflation appears "unlikely," as prices are declining at the moment, the IMF said. An important risk to growth is a further appreciation to the dollar, which is already slightly overvalued, the agency said.

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