Trump’s fiscal policy threatens emerging markets – Lagarde
Looser fiscal policy could increase market volatility and worsen global imbalances – IMF chief
The managing director of the International Monetary fund has warned US authorities that expanding the federal deficit now could lead to further volatility in emerging markets.
“The planned expansion in the federal deficit at this stage of the cycle could trigger a faster-than-expected rise in inflation,” Christine Lagarde said on June 14.
“That would be accompanied by a more rapid rise in interest rates that could increase market volatility both in the US and abroad,” Lagarde said. “We are
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