WASHINGTON, May 26 – RIA Novosti. A possible downturn in US business activity that risks turning into recession, along with a strengthening US currency and high Federal Reserve (Fed) interest rates, could have serious consequences for the rest of the world, the International Monetary Fund (IMF) has said.
“The combination of higher US interest rates, a stronger dollar and a sharp decline in activity will create significant negative macro-financial implications for the rest of the world,” the international organisation said in a published statement.
As the IMF stressed, while near-term US growth figures may be better than expected, “this will only mean that the economy will slow more sharply (possibly in 2024), creating a recession while tight monetary policy remains in place”.
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