WASHINGTON, July 26 The Federal Reserve will
need to effectively communicate its strategy to exit from its
massive monetary stimulus to avoid excessive interest rate
volatility, the International Monetary Fund said on Friday.
In its annual assessment of the U.S. economy, the IMF said
while the Fed had a range of tools to manage the normalization
of monetary policy, there were risks and challenges in the
unwinding of the stimulus the central bank has lent the economy.
"Effective communication on the exit strategy and a careful
calibration of its timing will be critical for reducing these
risks," the IMF said.