The International Monetary Fund warned on Wednesday that U.S. President Donald Trump's proposed tax cuts and rollback of financial regulations could spark a new round of financial risk-taking of the type that preceded the last crisis in 2008.
The International Monetary Fund maintained its forecast for weak global growth on Tuesday and warned that further stagnation will fuel more populist sentiment against trade and immigration that would stifle activity, productivity and innovation. In the latest update of its World Economic Outlook, the IMF said that a drop in U.S. growth for 2016 due to a weak first-half performance would be offset by strengthening in Japan, Germany, Russia, India and some other emerging markets.
World financial markets have calmed after turmoil earlier this year, but more needs to be done to ensure global financial stability amid slowing growth, weak commodity prices and worries about China's economy, the International Monetary Fund warned on Wednesday.
The International Monetary Fund cut its global growth forecast for the fourth time in the past year on Tuesday, citing China's slowdown, persistently low crude oil prices and chronic weakness in advanced economies.