All eyes on US amid global economic risks: IMF’s Georgieva

Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF)

Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), warned the United States about closely watching interest rates and industrial policies given the potential spillovers from the world’s biggest economy and reserve currency.

In an interview with Bloomberg, she stated: "All eyes are on the US”, focusing on what will happen with inflation and interest rates." She also pointed out that the continued strength of the US dollar is concerning for other currencies, especially due to the lack of clarity about how long it might persist.

She added that’s what I hear from countries, how long the US Fed will be stuck with higher interest rates.

However, Georgieva is optimistic that conditions will be conducive to starting interest rate cuts this year, saying: “The Fed is not yet prepared, and rightly so, to cut,” she said. “How fast? I don’t think we should gear up for a rapid decline in interest rates.”