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7/7, 1:32 PM (Source: TeleTrader)
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IMF warns of risks from rising US inflation

The International Monetary Fund (IMF) warned on Wednesday that rising inflation in the United States could pressure the Federal Reserve to raise interest rates earlier than expected, which in turn might negatively impact the economic recovery of emerging and developing countries.

"We know that accelerated recovery in the US will benefit many countries through increased trade, and inflation expectations have been stable so far. Yet there is a risk of a more sustained rise in inflation or inflation expectations, which could potentially require an earlier-than-expected tightening of US monetary policy," IMF Managing Director Kristalina Georgieva said in a blog post.

Georgieva further called for "urgent action" from the G20 and policymakers to address the "worsening two-track recovery" from the COVID-19 pandemic around the globe.

Breaking the News / JC