The IMF has warned that jitters surrounding Donald Trump’s threat to impose trade tariffs were driving up longer-term borrowing costs and would add to pressures facing the global economy in 2025.
Speaking to reporters in Washington on Friday, IMF managing director Kristalina Georgieva said global economic policy faced “quite a lot of uncertainty” in 2025, particularly around the trade policy of the world’s largest economy.
“That uncertainty is actually expressed globally through higher long-term interest rates,” Georgieva said, although she noted that short-term interest rates have gone down.
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