IMF economist sees only ‘transitory’ bump in inflation from U.S. stimulus

FILE PHOTO: Gita Gopinath, IMF's chief economist, speaks in Chile in 2019
FILE PHOTO: Gita Gopinath, Economic Counsellor and Director of the Research Department at the International Monetary Fund (IMF) speaks during a news conference in Santiago, Chile, July 23, 2019. REUTERS/Rodrigo Garrido

March 19, 2021

WASHINGTON (Reuters) – The chief economist of the International Monetary Fund said a $1.9 trillion U.S. stimulus plan could trigger a temporary bump in consumer prices, but she did not expect increased inflation to last long.

Gita Gopinath told National Public Radio, the U.S. Federal Reserve had tools to address inflation if the increase in prices lasted longer, but cautioned that a quick increase in interest rates could be “quite disorderly”.

(Reporting by Andrea Shalal, Editing by Franklin Paul)