IMF says Fed ‘highly effective,’ must carefully communicate withdrawal plans

imf says fed highly effective must carefully communicate withdrawal plans 1

Sumary of IMF says Fed ‘highly effective,’ must carefully communicate withdrawal plans:

  • The Fund’s board also said that Biden administration proposals to invest in infrastructure, aid vulnerable households, boost labor force participation and improve productivity were welcome, but noted that “a better targeting of policies” would strengthen their impact on demand and equality and lessen the risk of sustained inflation.
  • The IMF said the United State should prioritize spending towards programs that have the biggest impact on productivity, labor force participation, poverty reduction and the transition to a low-carbon economy.
  • The Fund also said more could be done to boost tax revenues, including phasing out tax credits at lower levels of household income, increasing the payment of estate taxes and reformulating business taxes on cash flow instead of profits.

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