The head of the International Monetary Fund (IMF), Kristalina Georgieva, has cautioned against the Federal Reserve slowing down with its interest rate hikes as it attempts to tame soaring inflation.
Speaking in an interview with The Associated Press on Tuesday, the IMF Managing Director was asked for her thoughts on pausing interest amid concerns that a strengthening U.S. dollar is weakening other currencies around the world, particularly those in poorer nations, and contributing to a cost of living crisis in those countries.
Georgieva said that the Central Bank “has no option but to stay the course” until the cost of living significantly declines.
“They owe it to the U.S. economy, they owe it to the world economy, because what happens in the United States if inflation does not get under control can have also spillover impacts for the rest of the world,” Georgieva said.
The dollar is up 18 percent this year and hit a new fresh two-decade high in September after the Federal Reserve raised interest rates by another 75 basis points.