USA-Inflation/Monetary Policy/IMF

IMF warns of increased risks as U.S. inflation skyrockets to 31-year high

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  • Pусский

Shotlist


Beijing, China - Dec 4, 2021 (CCTV - No access Chinese mainland)
1. Screenshot of International Monetary Fund (IMF) blog published on official website

FILE: Washington D.C., USA - Date Unknown (UNifeed - No access Chinese mainland/Not for sale)
2. Various of IMF headquarters, annual meeting poster, traffic

FILE: Shanghai, China - Date Unknown (CGTN - No access Chinese mainland)
3. Various of U.S. dollar banknotes going through cash counting machine

FILE: Los Angeles, California, USA - Oct 21, 2021 (CCTV - No access Chinese mainland)
4. Products for sale in supermarket
5. Various of fruits, meat, dairy products, customers shopping

FILE: Texas, USA - Date Unknown (CCTV - No access Chinese mainland)
6. Gas station
7. Various of drivers refueling cars
8. Gas station, traffic

FILE: Los Angeles, California, USA - Nov, 2021 (CGTN - No access Chinese mainland)
9. Various of tents, homeless people on street

Storyline


U.S. monetary policy should pay more attention to inflation risks given the inflation rate jumping to a 31-year high along with uncertain prospects for economic recovery and wider issues amid the spread of the Omicron COVID-19 variant, according to the Washington-based International Monetary Fund (IMF) on Friday.

Global supply chain shortages are expected to be eased by the second half of next year, but high inflation is likely to persist for longer than previously estimated because of a number of factors such as the transmissible Omicron variant, according to a IMF blog published on Friday by Tobias Adrian and Gita Gopinath.

The authors state that the strength of economic recovery and inflationary pressure varies from country to country, so monetary policy should be adjusted according to each nation's own specific conditions.

The U.S. has reason to attach great importance to inflation risks in relation to monetary policy amid historical inflation pressure continuing to intensify compared with other advanced economies such as the eurozone, according to the authors who suggested that it is appropriate for the U.S. Federal Reserve (the Fed) to accelerate the pace of tapering asset purchases and bring forward the timing of interest rate hikes.

The blog also pointed out that tightened monetary policies in advanced economies are likely to cause market volatility, especially for emerging economies. In efforts to avoid such situation, advanced economies need to timely adjust their policies in line with the market.

According to the latest data, the U.S. inflation stood at 6.2 percent in October, well above the Fed's two percent target and hitting the highest since 1990.

The Fed announced in early November that it would begin reducing its asset purchases at a pace of 15 billion U.S. dollars a month, but Fed Chairman Jerome Powell said the move should not be interpreted as a sign of an imminent rate hike.

Powell acknowledged on Tuesday and Wednesday in congressional testimonies that the inflation in the U.S. could be more persistent than previously expected and that the Fed would use its tools to ensure such a bad condition would not persistently last.

Public opinion believes that Powell has changed his attitude significantly as the Fed president had claimed for several months that the increase in inflation was "temporary" and the Fed would remain patient with the situation and not rush to raise interest rates.

Based on the Fed's latest dot-plot projection, seven rate hikes are expected by the end of 2024.

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  • ID : 8244926
  • Dateline : Dec 4/3, 2021/File
  • Location : United States
  • Category : economy, business and finance
  • Duration : 1'22
  • Audio Language : Nats/Part Mute
  • Source : China Media Group(CMG)-CCTV,China Media Group(CMG)-CGTN,UNifeed
  • Restrictions : No access Chinese mainland
  • Published : 2021-12-04 17:53
  • Last Modified : 2021-12-05 16:11:40
  • Version : 1
  • ID : 8244926
  • Dateline : 4 дек 2021/Архив
  • Location : США
  • Category : economy, business and finance
  • Duration : 1'22
  • Audio Language : Естественный звук/Частично немое
  • Source : China Media Group(CMG)-CCTV,China Media Group(CMG)-CGTN,UNifeed
  • Restrictions : Недоступно материковой части Китая
  • Published : 2021-12-05 16:06
  • Last Modified : 2021-12-05 16:11:40
  • Version : 1

USA-Inflation/Monetary Policy/IMF

IMF warns of increased risks as U.S. inflation skyrockets to 31-year high

Dateline : Dec 4/3, 2021/File

Location : United States

Duration : 1'22

  • English
  • Pусский


Beijing, China - Dec 4, 2021 (CCTV - No access Chinese mainland)
1. Screenshot of International Monetary Fund (IMF) blog published on official website

FILE: Washington D.C., USA - Date Unknown (UNifeed - No access Chinese mainland/Not for sale)
2. Various of IMF headquarters, annual meeting poster, traffic

FILE: Shanghai, China - Date Unknown (CGTN - No access Chinese mainland)
3. Various of U.S. dollar banknotes going through cash counting machine

FILE: Los Angeles, California, USA - Oct 21, 2021 (CCTV - No access Chinese mainland)
4. Products for sale in supermarket
5. Various of fruits, meat, dairy products, customers shopping

FILE: Texas, USA - Date Unknown (CCTV - No access Chinese mainland)
6. Gas station
7. Various of drivers refueling cars
8. Gas station, traffic

FILE: Los Angeles, California, USA - Nov, 2021 (CGTN - No access Chinese mainland)
9. Various of tents, homeless people on street


U.S. monetary policy should pay more attention to inflation risks given the inflation rate jumping to a 31-year high along with uncertain prospects for economic recovery and wider issues amid the spread of the Omicron COVID-19 variant, according to the Washington-based International Monetary Fund (IMF) on Friday.

Global supply chain shortages are expected to be eased by the second half of next year, but high inflation is likely to persist for longer than previously estimated because of a number of factors such as the transmissible Omicron variant, according to a IMF blog published on Friday by Tobias Adrian and Gita Gopinath.

The authors state that the strength of economic recovery and inflationary pressure varies from country to country, so monetary policy should be adjusted according to each nation's own specific conditions.

The U.S. has reason to attach great importance to inflation risks in relation to monetary policy amid historical inflation pressure continuing to intensify compared with other advanced economies such as the eurozone, according to the authors who suggested that it is appropriate for the U.S. Federal Reserve (the Fed) to accelerate the pace of tapering asset purchases and bring forward the timing of interest rate hikes.

The blog also pointed out that tightened monetary policies in advanced economies are likely to cause market volatility, especially for emerging economies. In efforts to avoid such situation, advanced economies need to timely adjust their policies in line with the market.

According to the latest data, the U.S. inflation stood at 6.2 percent in October, well above the Fed's two percent target and hitting the highest since 1990.

The Fed announced in early November that it would begin reducing its asset purchases at a pace of 15 billion U.S. dollars a month, but Fed Chairman Jerome Powell said the move should not be interpreted as a sign of an imminent rate hike.

Powell acknowledged on Tuesday and Wednesday in congressional testimonies that the inflation in the U.S. could be more persistent than previously expected and that the Fed would use its tools to ensure such a bad condition would not persistently last.

Public opinion believes that Powell has changed his attitude significantly as the Fed president had claimed for several months that the increase in inflation was "temporary" and the Fed would remain patient with the situation and not rush to raise interest rates.

Based on the Fed's latest dot-plot projection, seven rate hikes are expected by the end of 2024.

ID : 8244926

Published : 2021-12-04 17:53

Last Modified : 2021-12-05 16:11:40

Source : China Media Group(CMG)-CCTV,China Media Group(CMG)-CGTN,UNifeed

Restrictions : No access Chinese mainland

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