United Nations warned of the risk of a global recession stemming from monetary policy and called for a new strategy to the world central banks with the Fed.
The United Nations Conference on Trade and Development (UNCTAD) called for a review of steps that will have serious consequences, especially for developing countries.
“Excessive monetary tightening may initiate a period of recession and economic instability for some countries,” the report said. interest “Any belief that they can drive prices down by relying on rates is a reckless gamble.”
Higher interest rates, including the Fed’s hikes, will have a more severe impact on emerging economies, which already have high levels of private and public debt, the report said.
“The current action plan is hurting vulnerable people everywhere, especially in developing countries. We must change course,” UNCTAD Secretary General Rebeca Grynspan said at a press conference in Geneva. she said.
BE CAREFUL WARNING FROM IMF
A similar call came from IMF Director Kristalina Georgieva.
Georgieva stated that global recession can be prevented if the financial policies of governments are consistent with monetary tightening. Stating that there may be countries that will enter recession next year, Georgieva emphasized that the responsibility of the Fed is very high and called for being extremely cautious in its policies and careful about its impact on the world.