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Grim global outlook for IMF-World Bank meeting

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Finance ministers and central bankers meeting in Washington this week for the International Monetary Fund and World Bank meetings face a mounting list of global economic challenges.

To name a few: High inflation, soaring interest rates, war in Ukraine, energy and commodity shocks, looming European recession, slowdown in China, market turmoil in the UK.

“This is a very extraordinary and unprecedented time in the history of the world economy,” said Mark Sobel, a former Treasury official who is the U.S. chairman of the think tank’s Official Monetary and Financial Institutions Forum.

Facilitate macro discussion: The Federal Reserve’s campaign to eradicate high inflation. The Federal Reserve (Fed) rate hike has had ripple effects around the world, with many central banks following suit or stepping in to support their currencies in the face of a stronger dollar.

This has led to economists complaining that the world’s central banks are overdoing it – the topic is certainly in the background of this week’s debate. But the Federal Reserve and other policymakers are mandated domestically, and Sobel doesn’t think they can coordinate much when it comes to raising rates to combat inflation.

“A lot of the country’s policies, after all, have gone their own way,” he said.

more than that Sobel said the IMF faces several pressing operational issues that policymakers should focus on this week. The IMF executive board last week also approved new loans to Ukraine, and the US is expected to use the meeting to encourage European countries to provide more aid.

“The pace of money transfers to Ukraine is too slow,” Treasury Secretary Janet Yellen said in an interview with the FT’s James Polity published Sunday. “We have commitments, but we need to put money in.”

Financial calendar: Prime Minister Yellen is to receive Ukraine’s Finance Minister Sergiy Marchenko at the Ministry of Finance today. She will also meet with Indian Finance Minister Nirmala Sitharaman and African Finance Ministers. On Wednesday, she will join her discussion at the Ministerial Roundtable on her support to Ukraine at the IMF and sit in her fireside chat with former New York Fed President and Bretton Woods Commission Chair Bill Dudley.

Also today: The IMF releases its latest global economic outlook and Global Financial Stability Report this morning.

it’s tuesday — I hope you spend your weekends peeping at leaves and sipping cider. Have tips, story ideas, or feedback? Send them to: [email protected] When [email protected].

International Monetary Fund Releases World Economic Outlook at 9am… New York Fed’s Five-Year Inflation Expectations Data Release at 11am… Cleveland Fed President Loretta Mester Speaks at Economic Club in New York at 12pm

democrats set fire — Fed Chair Powell has been feared by nervous investors, analysts and progressive groups that he is trying to push the economy into recession. , Congressional Democrats.

More from the MM host: “In interviews with key lawmakers on Capitol Hill, most Democrats in the House and Senate responded to Powell’s campaign to quell inflation with resignations and caution. Few are willing to advise him, including multiple hearings, with some exceptions such as. Elizabeth WarrenHe accused Powell of being “reckless and dangerous” for endangering the jobs of millions of workers.

Former Fed Vice Chairman Donald Cohn said his stance that his mission was widely accepted may not last forever. “I think the headwinds will increase when unemployment goes up and companies start hiring a little less and laying off more. But that hasn’t happened yet.”

Bernanke Wins Nobel Prize — AP: “Former U.S. Federal Reserve Board member Ben Bernanke, who used his academic expertise on the Great Depression to revive the U.S. economy after the 2007-08 financial crisis, Bernanke was awarded the Nobel Prize in Economics alongside two economists from the United States for their work on the effects of bank failures.”

Tweet of the day — Federal Reserve: They are like us! from NYT’s Gina Smirek: