Posted 2/12/2024, 5:19:18 PM
IMF's Gopinath Urges Caution on Rate Cuts Despite Soft Landing Signs
- IMF official Gopinath urges central banks to be cautious about interest rate cuts
- Inflation has come down in many countries; global economy appears headed for a soft landing
- Central banks should move slowly on rate cuts to avoid over-easing financial conditions
- For the Fed, it makes sense to hold off on rate cuts until second half of 2024 given strong labor market and consumer demand
- Gopinath gave the advice in an interview with Foreign Policy magazine