Warsh says global economy has proved more resilient than expected

Federal Reserve chair Kevin Warsh said he was surprised by the resilience of the global economy, which he said had weathered geopolitical shocks and interest-rate rises better than he had expected.

“Almost everywhere in the global economy we are seeing a resilience that I probably would not have predicted five or six months ago,” Warsh said on Friday in an informal discussion with International Monetary Fund managing director Kristalina Georgieva. They were speaking during the IMF and World Bank annual meetings in Bangkok. [1]

The remarks come as energy prices have surged during the war involving Iran. Nieuws.nl, citing ANP and AFP, reported that higher oil and gas prices, alongside a sharp rise in investment in artificial intelligence, have added to inflation in many economies, including the United States. Central banks, including the Fed, have raised interest rates to tackle inflation. [1]