IMF's Christine Lagarde says would not associate Fed chief Powell with 'craziness'
US President Donald Trump has described the fall in the US market as a long-awaited correction and described the move by the Federal Reserve to raise interest rates as 'crazy'. Christine Lagarde, managing director at IMF, said she would not associate US Fed Chief Powell's move with ‘craziness’.
US President Donald Trump has described the fall in the US market as a long-awaited correction and described the move by the Federal Reserve to raise interest rates as 'crazy'.
Christine Lagarde, managing director at IMF, said she would not associate US Federal Reserve chief Jerome Powell with ‘craziness’.
"Powell and the members of his board comes across as an extremely serious solid people keen to base their decisions on actual information and decide to communicate that properly," she said in an interview to CNBC’s Geoff Cutmore.
“All over the world it is good principle to have independence of the central banks and of the central bank governor. We have certainly advocated that all countries and US Fed is no exception," said Lagarde.
The IMF has downgraded global growth forecast to 3.7 percent from 3.9 percent.
Talking about the growth forecasts, Lagarde said, “When we do forecasts we do that taking into account all the policies that are confirmed, all the decisions that are made and also trying to assess the confidence impact that some of those decisions are making.”
She said 3.7 percent is nothing to be ashamed of and it could be higher.
“Personally I would think we take all the right policies in order to have more growth. So, de-escalating trade tensions, sitting around the table, and addressing the issues in the system and proposing new terms and new legal framework within which trade operators – the companies, the enterprises, the SMEs, big corporates can trade and can expect the terms of trade is an imperative for growth,” said Lagarde.
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