NEWS: IMF President Lagarde reminded countries not to rely too heavily on easy policie

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Lagarde reiterated that the main risk facing the global economy is Sino-US trade tensions, which may exacerbate China's economic slowdown.
"There is no problem with China's economic slowdown. It's reasonable, "she said. "But if it slows down fast, that's the real problem."
Lagarde also welcomed the Federal Reserve's decision to raise interest rates in the future based on the performance of economic data, which has been clouded by rising trade frictions.
The Fed is one of the few central banks with "small" policy space to expand stimulus, she said.
"It would be a good thing if economies did not have to rely again on central banks to withstand the next shock," Lagarde told delegates at the World Economic Forum in Davos, Switzerland.
"In formulating fiscal policies and completing reforms, policymakers must ensure that the right course of action is taken."
Rising trade frictions and fears of a global slowdown have triggered financial market shocks, forcing major central banks to suspend their efforts to withdraw crisis-mode stimulus packages.
Federal Reserve Chairman Powell recently hinted that he would slow down the rate hike and stressed that the next policy action of the Federal Reserve would depend largely on the upcoming economic data.
Publishing policy guidelines based on data, such as data on employment and inflation, is one of Powell's main principles, Lagarde said.


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