Connect with us

Popular World News

U.S. faces risk of bankruptcies, unemployment if fiscal support not maintained: IMF By Reuters

G20 heads to stop short of denouncing protectionism in communique: Nikkei


U.S. faces risk of bankruptcies, unemployment if fiscal support not maintained: IMF By Reuters

© Reuters. FILE PHOTO: IMF Managing Director Kristalina Georgieva speaks at the Global Women’s Forum in Dubai


By Andrea Shalal WASHINGTON (Reuters) – The head of the International Monetary Fund on Friday warned that the United States faced a possible “dangerous wave” of bankruptcies and unemployment if it did not maintain fiscal support until the coronavirus heath crisis ended. IMF Managing Director Kristalina Georgieva told reporters the United States, the world’s biggest economy, had scope to take further action and doing so would provide positive spillover effects for the global economy. Asked if she supported President Joe Biden’s $1.9 trillion relief plan, Georgieva said the IMF supported the plan’s focus on vaccinations, health care, support for the unemployed and aid to state and local governments. Despite the economy’s nascent recovery, Georgieva said risks remained, especially if support was not maintained long enough. “There is still that danger that if support is not sustained until we have a durable exit from the health crisis, there could be a dangerous wave of bankruptcies and unemployment,” she said. In 2020, she said U.S. bankruptcies were lower than average in normal years due to fiscal support and it was important to continue to calibrate that support in 2021 while preparing carefully for the moment when some businesses did not survive “We want to see careful, well-calibrated policy action. We are keen for policy support to be there,” she said, adding, “Great care is necessary so we don’t find ourselves in a difficult situation.” Georgieva acknowledged concerns raised by former Treasury Secretary Lawrence Summers about a possible overheating of the U.S. economy, but said she was confident that new Treasury Secretary Janet Yellen would keep a careful eye on those risks.
“Indeed we have to be watchful of risks, but we have the best possible Secretary of the Treasury for this potential risk, she said, “And I’m confident that there will be a lot of attention being paid on anticipating and, if necessary, taking appropriate action to address these risks.”
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Continue Reading
You may also like...
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *


To Top
error: Content is protected !!