The International Monetary Fund said Thursday it is prepared to engage with the U.S. Federal Reserve on the findings of the Fed's forthcoming review into forward guidance and monetary policy communications.
At a routine briefing, IMF spokesperson Julie Kozack said the fund expects to discuss the conclusions of the Federal Reserve's planned task force, which has been established to examine how the central bank communicates policy intentions.
Kozack reiterated points recently raised by senior IMF officials, noting that forward guidance was a useful instrument for central banks, particularly when policy interest rates were close to zero. She added that it is appropriate for central banks to revisit how they use such tools now that interest rates have increased.
"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," Kozack said.
The IMF's remarks focus on cooperation around the Fed's internal review of communications strategies - the organization indicated it will consult on the task force's results when they are available. The IMF spokesperson did not provide additional detail on timing, scope, or specific areas the IMF intends to address in any follow-up discussions.
The comments underscore the IMF's interest in central bank communication practices and reiterate the broader point raised by IMF leadership that tools developed for very low-rate environments may merit reassessment as policy rates rise. Beyond expressing readiness to engage, the IMF did not state any positions on what changes, if any, should be made to forward guidance or other communication tools.
Contextual note - The information in this report is limited to the statements made by the IMF spokesperson at the briefing and the references to recent IMF commentary about the role of forward guidance when rates were near zero and the appropriateness of reassessment now that rates have risen.