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Trump Urges Fed to Pause | IMF Warns of Looming Financial Crisis
Published December 12, 2018
President Donald Trump said it would be a mistake if the Federal Reserve raises interest rates when it meets next week, continuing his criticism of the US central bank. Trump needs the flexibility of lower interest rates to support the broader US economy as he fights a growing trade battle against China, and potentially other countries.
David Lipton, the deputy head of the International Monetary Fund, has warned the storm clouds of the next global financial crisis are gathering despite the world financial system being unprepared for another downturn. Lipton also stated that recent capital outflows had further exposed vulnerabilities in emerging markets, which could be hit harder by the next global crisis.
Lawmakers in Britain’s Conservative Party triggered a no confidence vote against Prime Minister Theresa May, threatening her leadership as she struggles to secure a deal for Britain to leave the European Union. May quickly responded that she would not resign and warned rebellious lawmakers that ousting her would not make getting a Brexit deal any easier, and instead would bring delay and confusion.
President Trump heatedly threatened to shut down the US government as he and Democratic leaders bickered over funding for his promised border wall and offered a grim preview of life in Washington for the next two years under a divided government.