The International Monetary Fund is concerned about high interest rates in America


US Federal Reserve meeting minutes revealed that officials are concerned that progress on inflation may stall

Kristalina Georgieva warned the General Director to the International Monetary Fund From that interest rates The rise in the United States was not good for the rest of the world and may represent A source of concern If it continues for a long time, but she believes thatFederal Reserve Board(The US central bank) was acting wisely.

Georgieva said at an event hosted by the Atlantic Council that the US government could also consider taking other control measures Inflation.

She considered that “the rise in interest rates for the rest of the world is not good news. “High interest rates make the United States more attractive, so financial flows come here, and that leaves the rest of the world suffering somewhat.”

High interest rates contributed to the rise in the value of the dollar, which weakened the currencies of other countries.

“If this goes on for a long time, it could become a bit of a concern in terms of financial stability,” Georgieva said.

The minutes of the Federal Reserve meeting revealed that officials are concerned that the progress made regarding inflation may stall and that there is a need to extend monetary tightening for a longer period to curb inflation in the largest economy in the world.

Investors, who had earlier expected interest rate cuts in June, see September as the most likely time for the start of the monetary easing cycle after the release of stronger-than-expected data on consumer price inflation for the third time in a row.

Georgieva stated that the American economy is successful because it is more innovative and opens the way for entrepreneurship at a time when technological change is accelerating.

She said that the labor market in the United States has also held up, and immigration has boosted the size of the labor force, which in turn has helped control wage growth.

She stated that the inflation control law issued by the Joe Biden administration and support related to the Covid-19 pandemic also helped in growth, and added that the International Monetary Fund sees some room for the US government to address ongoing inflation and work to achieve a soft landing for the economy.