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IMF's Lagarde says Fed rate hikes must be based on price pressures

Published 12/01/2016, 15:22


Investing.com -

Further interest rate hikes by the U.S Federal Reserve should be based on "clear evidence" of higher wages and prices, International Monetary Fund chief Christine Lagarde said on Tuesday.

Speaking at a central banking conference in Paris at the Bank of France, Ms. Lagarde said the Fed's first interest rate increase in a decade, which was made in December, had gone smoothly.

She noted that the appreciation of the US dollar comes at a tricky time for emerging markets with developing markets already facing slower growth and falling commodity prices.

Ms. Lagarde also warned that oil and commodity prices are unlikely to rally strongly anytime soon.

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