IMF director cautions world's central banks against premature withdrawal of economic support
8/23/2013JACKSON HOLE, Wyo. — The head of the International Monetary Fund is cautioning the world’s major central banks not to withdraw their unconventional support for weak economies too soon.
IMF Managing Director Christine Lagarde says stimulative policies are still needed in key regions, especially Europe and Japan, which have struggled with prolonged weakness.
She’s addressing the Federal Reserve’s annual conference in Jackson Hole, Wyo.
Lagarde says central banks must carefully develop strategies for scaling back their efforts to keep borrowing rates low. She says any pullback should be determined by the strength of individual economies.
Her comments come as the Fed is signaling it could slow its bond purchases later this year if the U.S. economy continues to improve. The Fed’s bond buying has helped keep U.S. interest rates near record lows.