WASHINGTON, July 9 - The International Monetary Fund said on Thursday that it intends to engage with the U.S. Federal Reserve regarding the results of the Fed's planned review of forward guidance and its methods for communicating monetary policy.
At a routine briefing, IMF spokesperson Julie Kozack reiterated comments previously made by senior officials at the Fund. Kozack noted that forward guidance had been a valuable instrument for central banks, especially during periods when policy interest rates were effectively at zero. She added that, with policy rates having risen, it is natural for central banks to reexamine how they use that tool.
Kozack specifically referenced the Fed's own consideration of internal work on communications. "With respect to the Fed in particular, they have talked about setting up a task force to look at communications, and we very much look forward to engaging with them on the findings of the task force and on their thinking about how communications can be adapted," she said.
The spokesperson delivered these remarks in the context of a regular IMF briefing, repeating the Fund's established position that forward guidance has played a constructive role in central bank toolkits during periods of very low interest rates while acknowledging the logic of reassessment as conditions change.
The IMF's statement focused on process and dialogue rather than on specific recommendations or timelines. It emphasized the Fund's interest in reviewing the outcomes of the Fed's internal evaluation and in discussing potential adjustments to communication practices as conceived by the Fed task force.
Beyond underlining the usefulness of forward guidance in past policy regimes, Kozack's comments signaled the IMF's intention to participate in follow-up discussions once the Fed's task force completes its review. The briefing did not provide additional details on the scope or schedule of the Fed's work, nor did it include specific proposals for changes to communications.