Fed can’t afford to ignore emerging markets: Lagarde

The Federal Reserve cannot afford to ignore the risk of fallout in emerging markets from the winding down of its $85 billion-a-month bond buying program, said Christine Lagarde, managing director of the International Monetary Fund.”Very negative spill-over effects on the emerging market economies could very much backfire on other economies. So to assume that [the] domestic economy is totally isolated, that a country is an island, would not be the right approach,” Lagarde told CNBC on the sidelines of the Ambrosetti Forum in northern Italy over the weekend.

via Fed can’t afford to ignore emerging markets: Lagarde.

Leave a Reply

Your email address will not be published.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