IMF Chief Calls for Economic Overhauls as Global Growth Slows

By Jeff Najjar

Christine Lagarde—the head of the International Monetary Fund—has called for the world’s largest economies to urgently move ahead with economic overhauls as global growth slows and emerging markets are rocked by market turmoil.  The International Monetary Fund reported plans to downgrade its global growth outlook for the year to its slowest rate since the financial crisis.  Lagarde has called for a joint policy effort to address global economic challenges, including accommodative monetary policy in advanced economies; growth-friendly fiscal policies; and structural reforms aimed at boosting potential output and productivity.  Lagarde also warned the United States Federal Reserve from raising interest rates prematurely in order to avoid global economic uncertainty.