The International Monetary Fund announced Thursday that it is eager to work alongside the U.S. Federal Reserve as the central bank conducts a planned review of how it communicates its monetary policy decisions, including its use of forward guidance.
IMF spokesperson Julie Kozack echoed comments made recently by other senior IMF officials, noting that forward guidance has proven to be a helpful tool for central banks — particularly during times when interest rates were hovering near zero. However, she said it is entirely reasonable for central banks to reconsider their strategies now that interest rates have moved significantly higher.
Kozack specifically addressed the Federal Reserve’s plans during a regularly scheduled briefing. “With respect to the Fed in particular, they have talked about setting up a task force to look at communications, and we very much look forward to engaging with them on the findings of the task force and on their thinking about how communications can be adapted,” she said.
