IMF warns of global risks from US fiscal expansion
Faster policy tightening by Fed could harm emerging economies, Obstfeld says
US president Donald Trump’s fiscal expansion could force the Federal Reserve to speed up its monetary tightening, the International Monetary Fund’s chief economist warned.
This in turn could help destabilise the global economy, Maurice Obstfeld said on July 24. The IMF also warned that current account surpluses in some countries could push others to adopt protectionist policies.
“The fiscal easing currently under way in the United States is leading to a tightening in monetary conditions, a
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