Global Banking Monitor

Sunday, May 28, 2023

SVB’s primary debtor in Canada revealed as Romanow’s tech finance firm

The bankruptcy liquidator in charge of Silicon...

Central banker calls for wage restraint in Iceland to slow down inflationary trends

Iceland’s labor market parties must rein in...

German growth outlook deteriorates, impacting the global economy

Germany suffered its first recession since the...
HomeMarketsIMF Urges US to...

IMF Urges US to Adopt Stricter Fiscal Measures to Combat Ongoing Inflation

By Pete Sadler
Photo by Patrick Tomasso on Unsplash

The International Monetary Fund said on Friday U.S. interest rates will likely need to remain higher for longer to tame inflation, and Washington needs to tighten fiscal policy to bring down its federal debt.

The IMF said in a statement issued after its “Article IV” review of U.S. policies that the U.S. economy has proved resilient in the face of tighter monetary and fiscal policy, but this means that inflation has been more persistent than anticipated.

The fund’s review included a U.S. full-year growth forecast of 1.7% for 2023, slightly above its 1.6% estimate in April, and lower output of 1.2% on a fourth-quarter comparison basis.

Read More : IMF Urges US to Adopt Stricter Fiscal Measures to Combat Ongoing Inflation

Latest Featured Post

Apple extends their FinTech ecosystem with 4.15% APR Savings account

Banking globalbanking -
Apple's FinTech domination plans are continuing! It's incredibly exciting to watch how they are positioning their selection of products and services, especially when it...

Latest Award

National Bank of Kuwait: Best App Update, 2023

Awards globalbanking -
29th March 2023, Dubai: We've been closely following the mobile banking launches in Kuwait recently and this week we wanted to call attention to...

Recently published

Previous article
IMF Calls on US to Increase or Suspend Debt Cap, Warns of Avoidable Risks
Next article
Brazilian Central Bank Chief Sees New Fiscal Bill as Positive Signal for Inflation

More from Author

Banking

SVB’s primary debtor in Canada revealed as Romanow’s tech finance firm

The bankruptcy liquidator in charge of Silicon Valley Bank’s Canadian unit...
Pete Sadler -
Markets

Central banker calls for wage restraint in Iceland to slow down inflationary trends

Iceland’s labor market parties must rein in wage growth to help...
Pete Sadler -
Markets

German growth outlook deteriorates, impacting the global economy

Germany suffered its first recession since the start of pandemic, extinguishing...
Pete Sadler -
Banking

ECB reaches a significant stage of rate tightening, says Makhlouf

The European Central Bank is in the final stretch of its...
Pete Sadler -

Read Now

SVB’s primary debtor in Canada revealed as Romanow’s tech finance firm

The bankruptcy liquidator in charge of Silicon Valley Bank’s Canadian unit is set to receive offers for its loan book on Monday, and the biggest asset is a loan to e-commerce lender Clear Finance Technology Corp., according to people with knowledge of the matter. Toronto-based Clear Finance, which...

Central banker calls for wage restraint in Iceland to slow down inflationary trends

Iceland’s labor market parties must rein in wage growth to help slow interest rate hikes, according to the central banker in charge of western Europe’s most aggressive monetary tightening campaign. “We are a country of consensus and so far we have not been able to reach consensus with...

German growth outlook deteriorates, impacting the global economy

Germany suffered its first recession since the start of pandemic, extinguishing hopes that Europe’s top economy could escape such a fate after the war in Ukraine sent energy prices soaring. Those troubles risk spilling over to the rest of the continent, which for decades has relied on Germany...

ECB reaches a significant stage of rate tightening, says Makhlouf

The European Central Bank is in the final stretch of its historic cycle of interest-rate increases, according to Governing Council member Gabriel Makhlouf. “Given our current outlook for inflation, we are likely to be close to ‘the top of the ladder,’” he said Saturday in Dubrovnik, Croatia. “So...

Bond traders widen their focus to potential risks beyond the debt ceiling

Bond investors are beginning to look beyond the debt-ceiling quagmire even as Treasury Secretary Janet Yellen’s warnings about when the US will run out of borrowing capacity become more pointed. What lies beyond is a bit troubling. While the Treasury department’s cash pile has slumped to levels last...

Former BOE hawks predict UK interest rates to reach the “pain level” of 6%

Hawkish former Bank of England rate-setters warned that interest rates will need to soar as high as 6% to stamp out inflation, a level the central bank has identified as painful for households and businesses. Willem Buiter, Andrew Sentance and DeAnne Julius, each of whom previously served on...

The West Coast emerges as a prominent epicenter of bank turmoil in 2023

One half of the country is experiencing the banking turmoil of 2023 quite differently than the other half. Three of the four banks that collapsed so far this year were in one state: California. Two of them were headquartered roughly 45 miles apart in San Francisco and Santa...

France receives another credit rating warning

The outlook on France’s credit rating was reduced to negative from stable by Scope Ratings, raising questions about President Emmanuel Macron’s efforts to spur growth and reduce a crisis-swollen debt burden. The Europe-based credit rating firm said it changed the outlook on its AA rating due to weakening...

IMF urges Fed to raise rates more, stating “The job is not quite yet done”

The International Monetary Fund said Friday in a new report that the US can avoid a recession this year, and that the Federal Reserve should raise interest rates again and hold them there through late next year. Amid persistent inflation, the IMF says the Fed needs to raise...

Investors foresee increased interest rates amidst growing inflationary pressures

Stronger than expected US inflation and a bump in consumer spending have fuelled worldwide expectations that interest rates will go higher, as predictions about future monetary policy rapidly shift. The Federal Reserve’s preferred measure of inflation overshot expectations in April, data published on Friday showed, while US consumer...

China’s industrial profits suffer an 18% decline in April due to sluggish demand

Profits at China's industrial firms slumped in the first four months of 2023, official data showed on Saturday, as companies continued to struggle with margin pressures and soft demand amid a faltering economic recovery. Profits fell 20.6% in January-April from a year earlier, compared with a 21.4% decline...

India central bank likely to reduce rates by end of financial year, predicts Kotak Bank treasury chief

The Reserve Bank of India (RBI) may cut interest rates only towards the end of the financial year despite a moderating inflation, Kotak Mahindra Bank's treasury chief said. "Inflation has come down, but core is not coming down that much. Some of it is base effect which they...

Global Banking Monitor

© All Rights Reserved, 2023