On Thursday, the former International Monetary Fund Chief Christine Lagarde has warned that global growth is “fragile” and “under threat”. Hence, policymakers should work hard to eliminate manmade vulnerabilities.
They should work together to “try to reduce the fragility and … resolve the uncertainty,” facing the global economy, she said.
Last week, Christine Lagarde has officially stepped down as the IMG Managing Director, condemned self-inflicted injuries, claims that issues like rade frictions and Brexit “are manmade and can be man-fixed.”
But she was the first woman to lead the crisis-lender and set to become the first lade to take over the leadership of the European Central Bank. has said that “a bit of woman wouldn’t hurt”.
She made comments on the day, the OECD has said that trade tensions are interrupting the world growth, prompted it to cut its forecast for 2019 to the slowest rate, since the global financial crisis started in 2008, only 2.9 percent low from 3.2 percent expansion.
The United States President Donald Trump’s trade war with Beijing has threatened business investment and exports at a tenure when the economy of China is at lower growth.
Ms. Lagarde said, “What we have at the moment is a rather mediocre growth” which is “fragile and it is under threat.”
She continued that central banks have done much of heavy lifting, to avert fiscal crisis from becoming a depression, but officials managing government policies now must step up.
Ms. Lagarde said, “I think central bankers have done an awful lot and were for many years regarded as the only game in town.”
In the latest post leading the ECB, Ms. Lagarde has said that she would focus on stability and job creation, but firmness alone may not be enough in the lives of real people.
If confirmed, Ms. Lagarde will enter into the new post in an environment where President Trump has maintained a continuous campaign against the US Federal Reserve for not cutting interest rates to restore growth.
The US President has accused the outgoing ECB President Mario Draghi of deliberately seeking to lessen the Euro to gain unfair trade benefits, something he has disproved.
Others in Europe have condemned Mr. Draghi for reducing rates further into the bleak territory to juice an inactive economy of the European Union.
But she continued that experiences show, in cases where politicians intrude with central bank independence, it “doesn’t pan out very well.”
Ms. Lagarde said that the central bankers should strive to be “predictable”, adding that “there is enough uncertainty around the world, not to add the uncertainty of what a central banker is going to do.”
Central Bankers “should deliver on their mandate and,” she continued “they should stick to facts and data so that they could be predictable.”