The Federal Reserve should defer raising interest rates until there are greater signs of wage or price inflation than are currently evident, the International Monetary Fund said Thursday. Based on forecasts, and barring upside surprises, this would put lift-off into the first half of 2016, the international agency said in its annual review of the U.S. economy. While "pockets" of financial stability risks are emerging, the report said, monetary policy should not be used to dampen them. Instead, financial regulation and supervision should be strengthened. The IMF said that the underpinnings for growth and job creation remain in place for the U.S., but momentum has been sapped by a series of negative shocks.
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