Sunday, October 4, 2015

CNBC: IMF's Lagarde has Concerns about the Global Economy

In this recent CNBC article, the IMF's Christine Lagarde expresses concerns about global growth falling below expectations and repeats that the IMF feels the US Fed needs to hold off on raising interest rates. Below are some quotes from the CNBC article.


"The head of the International Monetary Fund says there is reason to be concerned about the global economy.
In prepared remarks for a Wednesday speech, IMF Managing DirectorChristine Lagarde said that her organization sees troubling signs in the world's finances, and that it is unclear if the current situation is cyclical or if it represents a fundamental downturn.
"The simple answer is that there is no simple answer. Certainly, we are at a difficult and complex juncture," Lagarde said, explaining she is worried about recent global affairs — and international economics are similarly distressing.
On the economic front, there is also reason to be concerned. The prospect of rising interest rates in the United States and China's slowdown are contributing to uncertainty and higher market volatility," she said. "There has been a sharp deceleration in the growth of global trade. And the rapid drop in commodity prices is posing problems for resource-based economies."
. . . . . 
"As for the Federal Reserve, Lagarde said she was encouraged by how the U.S. central bank is going about its decision-making on when to raise rates.
"We are very pleased to see the fact that the decision will be data dependent — we think that that's very, very good. We don't see much movement on the inflation front nor on the wages front, so we are also very interested to see that the international scene is also perceived as likely to have domestic effects and may have been factored into the thinking," she said, adding that her organization does not see an economy ready for a rate hike."

No comments:

Post a Comment