IMF’s Gopinath sees risk of de-anchoring U.S. inflation expectations By Reuters

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.”