Following the UN, the IMF also urged the Fed to be cautious in its policies. IMF Director Georgieva emphasized that the Fed has a very high responsibility in this economic process.
After the coronavirus pandemic and the war that started between Russia and Ukraine, economic recession continues all over the world.
Countries this recession “Hawk“ Almost all countries continue to increase interest rates while trying to overcome it with tight monetary policies.
Despite the economic policies of all these countries to increase interest rates, Turkey continues to reduce interest rates to keep the wheels of industry and exports turning.
Turkey’s steps mobilized other countries
While these steps of Turkey are criticized by the opposition in our country, similar steps of Turkey’s policy are starting to be taken in other countries as well.
UN warns of interest
Firstly United Nations Conference on Trade and Development (UNCTAD); Continuing to raise interest rates by central banks in developed countries such as the US Federal Reserve (Fed) and the European Central Bank (ECB) risks pushing the global economy into recession and then into a prolonged recession.
An important statement came from the International Monetary Fund (IMF) after the UN’s interest announcements.
IMF chief warns
IMF Managing Director Kristalina Georgieva While visiting Saudi Arabia In his interview, he stated that the global recession can be prevented with the right fiscal policies.
Pointing out that global recession can be prevented if the fiscal policies of governments are consistent with monetary policy tightening, Georgieva stated that there may only be countries that will enter recession next year.
IMF urges Fed to be cautious
Georgieva urged the Fed to be extremely cautious in its policies and be mindful of its impact on the rest of the world. “very high“ stated that.
It was noteworthy that IMF Director Georgieva’s call to the Fed came after the United Nations (UN) called on central banks to stop interest rate hikes.