According to the Executive Director of the International Monetary Fund, Kristalina Georgieva, there is no significant slowdown in lending, and the Federal Reserve could do more in the current situation. The International Monetary Fund believes that there is no reason for the US central bank to change the cycle of raising interest rates because it is not suffering from a decline in lending by banks.
We don’t see a significant slowdown in lending yet, or to the extent that it should lead to a Fed pullout.
– said Kristalina Georgieva, Managing Director of the International Monetary Fund CNBCto
The US central bank warned in a banking report released in May that lenders are worried about more conditions, as problems at mid-sized financial institutions in the US prompt banks to tighten lending standards to households and businesses.
The situation is very uncertain
Fed credit advisors added that they expect more problems in the next year or so due to lower growth expectations, concerns about deposit outflows and reduced risk tolerance.
I cannot stress enough that we are in an exceptionally unstable environment. That’s why we must pay attention to trends and be agile, adapting — if trends change
Said the head of the International Monetary Fund. The IMF’s chief economist, Pierre-Olivier Gourenchas, said in April that banks were now in an uncertain position, posing a risk to the IMF’s global growth forecast of 2.8 percent for this year.
