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IMF's Gopinath says would be concerned on inflation if expectations become unanchored

IMF's Gopinath says would be concerned on inflation if expectations become unanchored
IMF's Gopinath says would be concerned on inflation if expectations become unanchored   -   Copyright  Thomson Reuters 2021
By Reuters

WASHINGTON – International Monetary Fund chief economist Gita Gopinath said on Tuesday that high inflation readings are mostly a U.S. phenomenon and are expected decline next year, adding that she would be concerned if medium-term inflation expectations rise.

“Next year, in terms of what would be concerning, it would be if we saw medium-term inflation expectations, de-anchoring,” Gopinath told a news conference on the IMF‘s economic outlook.

“So if they were moving kind of durably away from the Fed’s 2% target and moving away in a way that we haven’t seen before, then that would absolutely give, you know, cause for concern,” she said.