The US aid plan gives a “major boost to the global economy” (International Monetary Fund)

The International Monetary Fund estimated on Thursday that the $ 1.9 trillion economic relief plan approved by the US Congress on Wednesday would give “a major boost to the global economy.”

“We see potential positive repercussions on global growth,” International Monetary Fund spokesman Gerry Rice said at a news conference.

For the official, most countries should be able to take advantage of “stronger US demand,” but he drew attention to potential risks.

“We must be aware of the threats and countries must remain vigilant and alert to any potential risks, including the possibility of sharp changes in interest rates.”

Financial markets fear that progress in vaccination will encourage expectations of a rapid recovery, but they also fear that an inflationary spiral will begin forcing the Fed to raise interest rates earlier than expected.

Rice said the Fed and other central banks should continue to communicate “clearly, as they did,” about their assessments of the economy.

He also called for transparency about the views of each country’s exporters “regarding commodity purchases and interest rate policy to avoid unjustified tightening of financial conditions.”

The International Monetary Fund will update its forecast for the global economy next month, at the start of its semi-annual meeting.

hs-an / dga

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