WASHINGTON, Sept 19 The chief of the
International Monetary Fund on Thursday said the Federal
Reserve's decision to not scale back asset purchases earlier
this week was in line with what the fund had urged the U.S.
central bank to do.
"The IMF has always said that it should be gradual, that it
should be based on data, with clear indication of what the
criteria would be," Lagarde told reporters after giving a speech
at the U.S. Chamber of Commerce. "So clearly the decision that
was communicated yesterday and the various comments made by the
chairman show that it's exactly what we at the fund have
Based on the IMF's forecasts for the U.S. economy made in
July, Lagarde said the Fed should begin reducing its bond-buying
program at the end of 2013.
"The future would tell when the chairman (of the Federal
Reserve) and his board deems that it's appropriate, but for the
moment, it's clearly the approach that we've always
recommended," Lagarde said of the decision not to taper yet.