On the latter front, the Fund recently began consultations with policy makers in the United States, Japan, the euro area, China and Saudi Arabia. The aim is to design measures to reduce the imbalances and work for their adoption, through internationally concerted efforts.
Following a significant reduction in its policy rate over the second half of 2007, the Federal Open Market Committee (FOMC) eased policy considerably further through the spring to counter actual and expected weakness in economic growth and to mitigate downside risks to economic activity.