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IMF official says market optimism based on "benign" policy view

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(Reuters) - The International Monetary Fund's top official for financial system said current market optimism is based on a "benign" view of policy plans going forward, particularly in the United States, and things might not go as expected.

Financial Counselor Tobias Adrian told a conference that downside risks highlighted in a new financial report show the need for getting the policy mix right.

"The downside risks arise from deviations from the expected path of future policy," said Adrian, a former research director at the Federal Reserve Bank of New York. "We highlight particularly two such risks, from fiscal expansion that would lead to a higher and faster rise in interest rates, and a shift to inward-looking policies that could lead to a decline in global growth."

He also said while the U.S. corporate sector is generally healthy, debt levels are at historically high levels and there is a "tail of weaker firms" holding about $4 trillion in debt that

"If policies go unexpectedly badly, some part of the corporate sector might be exposed to these unexpected shocks, Adrian said.

(Reporting by David Lawder; Editing by Chizu Nomiyama)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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IMF official says market optimism based on "benign" policy view

WASHINGTON (Reuters) - The International Monetary Fund's top official for financial system stability said current market optimism is based on a "benign" view of policy plans going forward, particularly in the United States, and things might not go as expected.

(Reuters) - The International Monetary Fund's top official for financial system said current market optimism is based on a "benign" view of policy plans going forward, particularly in the United States, and things might not go as expected.

Financial Counselor Tobias Adrian told a conference that downside risks highlighted in a new financial report show the need for getting the policy mix right.

"The downside risks arise from deviations from the expected path of future policy," said Adrian, a former research director at the Federal Reserve Bank of New York. "We highlight particularly two such risks, from fiscal expansion that would lead to a higher and faster rise in interest rates, and a shift to inward-looking policies that could lead to a decline in global growth."

He also said while the U.S. corporate sector is generally healthy, debt levels are at historically high levels and there is a "tail of weaker firms" holding about $4 trillion in debt that

"If policies go unexpectedly badly, some part of the corporate sector might be exposed to these unexpected shocks, Adrian said.

(Reporting by David Lawder; Editing by Chizu Nomiyama)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

image
Business Standard
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IMF official says market optimism based on "benign" policy view

(Reuters) - The International Monetary Fund's top official for financial system said current market optimism is based on a "benign" view of policy plans going forward, particularly in the United States, and things might not go as expected.

Financial Counselor Tobias Adrian told a conference that downside risks highlighted in a new financial report show the need for getting the policy mix right.

"The downside risks arise from deviations from the expected path of future policy," said Adrian, a former research director at the Federal Reserve Bank of New York. "We highlight particularly two such risks, from fiscal expansion that would lead to a higher and faster rise in interest rates, and a shift to inward-looking policies that could lead to a decline in global growth."

He also said while the U.S. corporate sector is generally healthy, debt levels are at historically high levels and there is a "tail of weaker firms" holding about $4 trillion in debt that

"If policies go unexpectedly badly, some part of the corporate sector might be exposed to these unexpected shocks, Adrian said.

(Reporting by David Lawder; Editing by Chizu Nomiyama)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

image
Business Standard
177 22