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Uncertainty over global trade policies “Chart of”, the head of the IMF warned that Donald Trump’s tariff was ready to achieve global growth, raise prices and potentially play disaster with financial markets.
Crystalina Georgiva said Thursday that the largest shareholder of the fund would take “significant marks” in the “Global Trading System Reboot” in the United States.
However, when the IMF will increase its forecast for price pressure next week, the US president’s policies will stop predicting the global economy at a moment.
Georgiva said in a speech, “The financial market instability is over.” “And trade policy is literally out of charts.”
His comments came forward IMF And the World Bank’s spring meetings in Washington, where concerns over the threat of pushing Trump’s tariff to their highest level for more than a century are about to dominate.
The finance ministers around the world are expected to try to meet their US partners and use the next week’s rally for discussion for this reduction Tariff Announced on April 2 by Trump.
Ajay Bang, the chief World bankWednesday, the government called on to “take care of discussion and dialogue”.
“At this stage it is going to be really important,” he mentioned the White House’s decision to break the “mutual” duty implementation for 90 days. “We will be better than we do it”
Fund forecast amendments will be displayed in the latest version of its global economic view. In January, the IMF forecasts a 3.3 percent expansion in both 2025 and 2026, the global economy has increased the global economy in anticipation of strong growth in the United States.
After Trump surprised the market far away More aggressive trade policies Many analysts have downed their forecasts than expected, some are now seeing a significant risk of recession in the world’s largest economy.
Peterson Institute for International Economics said that the beginning of this week The US economy In 2024 less than 2.5 percent – only 0.1 percent will increase.
Georgiva said that the Trump administration’s tariffs were a “confidence loss” in response to more economic subsidies for exporters among the largest trading partners in the United States, including China and the EU.
Former President of Washington Joe Biden has also provided production subsidies through laws such as reduction in inflation, which has paid tax breaks to produce green technology in the United States.
Both Trump and Biden have highlighted the vast state support of Beijing’s production industry as American problems. Trump has threatened Brussels with 20 percent tariff, and China faces 5 percent tariff.
Georgiva It was also warned that the continued uncertainties of trade policies were at risk of creating more episodes of the financial market pressure, as equity markets have severely decreased and the cost of adoption of the US government has increased.
The managing director of the IMF describes the movement in the market, which also viewed the US currency drop as “unusual”.
“Despite the advanced uncertainty, the dollar has dropped and the US treasury yield curve ‘smiles’ – not the smile that it wants to see,” he added that the movements should be “alert”.
As a result of the dollar collapse in the market terror, it is threatened to question whether its position as a worldwide reserve currency is under threat.
“Something that is well involved in this, which benefits from the powerful network effects of this national, there is reason to be suspicious about rapid degradation [of the dollar’s status]”Under the Biden Administration, a former US Treasury officer, Brent Neman, said that he is now a professor at the University of Chicago.
“However, the United States is considered as a reliable promise to the place and rules of stable principles and large changes on the fact that the current order may affect the current order can certainly affect.”
