IMF economist sees only ‘transitory’ bump in inflation from U.S. stimulus

WASHINGTON (Reuters) – The chief economist of the International Monetary Fund said a $1.9 trillion U.S. stimulus plan could trigger a temporary bump in consumer prices, but she did not expect increased inflation to last long.

Gita Gopinath told National Public Radio, the U.S. Federal Reserve had tools to address inflation if the increase in prices lasted longer, but cautioned that a quick increase in interest rates could be “quite disorderly”.