World Money Chief Calls for Global Action

IMF head foresees widespread slowdown, backs US stimulus

By Jim O'Neill, Newser User

Posted Jan 28, 2008 10:55 AM CST

(Newser) – With a global recession looming, the head of the IMF has warned bankers meeting in Davos, Switzerland, that lower interest rates alone won’t avert a crisis, the Financial Times reports. Dominique Strauss-Kahn called on governments to follow the US in easing fiscal policies, reversing a quarter-century of emphasis on tight spending. IMF forecasts due this week show a “serious slowdown” globally, he said.

"I regard this as a recognition of the gravity of the situation that we face," said ex-US Treasury Secretary Larry Summers. Merrill Lynch head John Thain, meanwhile, told the group the subprime crisis battering Wall Street is spreading to credit card and consumer loan markets: “We are likely to see another wave of problems on the consumer-credit side,” he said.

Germany's Chancellor Angela Merkel, Juan Somavia, secretary general of the International Labor Organization ILO, and Dominique Strauss-Kahn, managing director of the International Monetary Fund IMF, from... (Associated Press)

SWITZERLAND-WTO-SUMMIT-TRADE-AID-KAHN (Getty Images)

Head of International Monetary Fund, IMF, Dominique Strauss-Kahn gestures as he leaves the Elysee Palace, in Paris, after a meeting with French President Nicolas Sarkozy, Monday, Jan. 21, 2008. (AP Photo/Christophe... (Associated Press)

Chairman of the International Monetary Fund Dominique Strauss-Kahn pauses speaking during a working session at the World Economic Forum in Davos, Switzerland, Saturday Jan. 26, 2008. Business leaders... (Associated Press)

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World Money Chief Calls for Global Action

IMF head foresees widespread slowdown, backs US stimulus

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Jobless 'Wasteland': Europe, US on Brink of Social Revolt

Recession left 'gaping wounds' says IMF head

IMF: Global Recession Is Over

World economy is growing, but recovery will be slow

Strauss-Kahn Cheered on Return to IMF

Former IMF chief pays staffers farewell visit

IMF Has Many Ethics Rules ... for the Little Guys Only

Guidelines really don't apply to top brass

DSK's Likely Successor Is His Antithesis

Christine Lagarde would signal a new era at the IMF

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World Money Chief Calls for Global Action

IMF head foresees widespread slowdown, backs US stimulus

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OTHER STORIES ON OUR RADAR

International Monetary Fund • recession • IMF • John Thain • Dominique Strauss Kahn • Davos • Larry Summers • subprime crisis • consumer loan markets • interest rate cut

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Jobless 'Wasteland': Europe, US on Brink of Social Revolt

Recession left 'gaping wounds' says IMF head

IMF: Global Recession Is Over

World economy is growing, but recovery will be slow

Strauss-Kahn Cheered on Return to IMF

Former IMF chief pays staffers farewell visit

IMF Has Many Ethics Rules ... for the Little Guys Only

Guidelines really don't apply to top brass

DSK's Likely Successor Is His Antithesis

Christine Lagarde would signal a new era at the IMF

About Us

Site

Newser By Users

Community

Site Maps

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More News

What is Newser?