Federal Reserve Chair Kevin Warsh got a thumbs-up from the head of the International Monetary Fund for taking the pursuit of price stability seriously.
“I want to praise him,” IMF’s Managing Director Kristalina Georgieva said Wednesday in an interview with Bloomberg Television’s Haslinda Amin. “He sent a clear signal that price stability is a priority for the Fed and that the Fed would pursue it, not only with words but also with actions.”
The Fed raised the benchmark interest rates last month to curb inflation, its first rate increase since July 2023, in defiance of pressure from President Donald Trump to lower borrowing costs.
Read More: Warsh Defies Trump’s Calls for Rate Cut as War Stokes Inflation
Georgieva also said that Treasury Secretary Scott Bessent’s statements on reducing the deficit are “encouraging,” though the US — along with France, Japan and Italy — must take action to reduce their high debts and budget deficits.
“In this environment, delay no more,” she said on spending and debt. “They need to act.” Georgieva added that Germany is a “happy exception” due to a long history of fiscal discipline.
In a speech earlier in the day, the head of the Washington-based lender urged nations to address the unbalanced AI boom, a prolonged energy shock and record debt piles.
Read More: World Faces Risk Cocktail From AI, Oil and Debt, Says IMF Chief ·
Georgieva will host the annual IMF-World Bank meetings in Bangkok next week, which gathers global policymakers.