11/29/2022, 2:16 PM (Source: TeleTrader)
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IMF says 'too early' for Fed to back off rate hikes

International Monetary Fund (IMF) Managing Director Kristalina Georgieva underlined on Tuesday it is "too early" for the Federal Reserve to "back off" interest rate increases, after several policymakers' voiced support for slowing down the pace of the rate hikes starting from its December meeting.

The IMF head also expressed optimism that the energy crisis brought on by the conflict in Ukraine would "speed" the drive towards "renewables" in Europe in an interview with Associated Press.

However, policymakers remain divided in the opinion of whether the Federal Reserve should move with interest rate hikes, with some stressing it is crucial to halt the monetary tightening and observe how the policy "transmits through the economy" before deciding on the future steps, while others are certain that more increases of interest rates are needed to reach to target.

Baha Breaking News (BBN) / AB