NEW YORK (Reuters) – U.S. inflation could remain above the Federal Reserve’s targets for a long time based on current projections, and there is a risk of inflation expectations “de-anchoring,” International Monetary Fund First Deputy Managing Director Gita Gopinath said on Wednesday.
Based on current projections of what the interest rate path may be, inflation will stay above the Fed’s 2% target “for a long time,” said Gopinath, speaking at an online event hosted by the Financial Times.
U.S. Treasury Secretary Janet Yellen said separately on Wednesday that the current annual inflation rate of 8% is “unacceptable” for the United States and 2% is an “appropriate target.”
(Reporting by Rodrigo Campos, Editing by Franklin Paul)
