Global interest rate hikes are 'yet to bite,' says IMF head | CNN Business

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The world economy is still in a sticky spot, according to the head of the International Monetary Fund

, despite cautious optimism among economists and business leaders that slowing inflation means the worst of last year’s crises may be over. Kristalina Georgieva, managing director of the IMF, said on Friday that conditions in the world economy were “less bad” than feared a few months ago, but further pain could be on the way.

For its part, the Fed also remains laser-focused on reaching the 2% target. Policy will have to remain restrictive for “some time” to come, Fed Vice Chair Lael Brainard said on Thursday. “We are determined to stay the course.” And both the IMF and ECB heads cautioned that China’s reopening of its economy following the abandonment of its strict zero-Covid policy threatened to push up prices of commodities, including oil and natural gas, as demand picks up later this year.

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