The Federal Reserve does not need to consider additional monetary policy stimulus as the world's largest economy is likely to pick up in coming quarters due to growth in exports and disposable incomes, IMF acting chief John Lipsky said.
A slowdown in growth in the United States and other major economies is likely to be temporary, caused by a spike in energy prices, the acting managing director of the International Monetary Fund told Reuters in an interview.
There is a risk of high unemployment as economic recovery will be slow, and it is appropriate for advanced economies to maintain accommodative monetary policies, Lipsky said.
Our expectation is current US monetary policy is consistent with a return to moderate growth, he said, when asked if the Fed needed to embark on additional quantitative easing.
Lipsky would not be drawn into discussing any details of a proposed second Euro zone bailout of debt-laden Greece.
Lipsky was more cautious in his comments on the IMF involvement in what Euro zone sources say is a new 80-100 billion Euro bailout package now taking shape and which effectively would replace a 110 billion Euro deal agreed only a year ago.
He also dismissed as hypothetical the idea that private-sector lenders will voluntarily agree to roll over Greek debt.
When you use the term new program, right now we are talking about bringing the existing program back into good focus, Lipsky said.
”There is a need for the program to be adequately financed and that's being discussed right now. Any of this talk (on Greek debt rollovers) is completely hypothetical”.