IMF Sounds Alarm on Trump’s Role in Global Interest Rate Hikes

The International Monetary Fund has pointed out that the economic policies of U.S. President Donald Trump are one of the main reasons behind the rise in interest rates globally. Among these policies, aggressive tax cuts, increased government spending, and trade tensions have created new inflationary pressures while spurring demand for credit; hence, central banks around the world have been increasing interest rates to keep a lid on inflation, and this is affecting the cost of borrowing globally. The IMF warns that the higher interest rates may strain emerging markets, raise debt servicing costs, and slow down global economic growth.

 

Source: Statements attributed to the IMF.