Governments need to focus cost-of-living support to those most vulnerable in order to avoid undoing central bankers’ work in fighting inflation, the International Monetary Fund’s chief said.
“If help is not well-targeted, it might be that providing support to populations in an un-targeted manner creates more pressure for prices to go up, and then the monetary policy should target even further action,” IMF Managing Director Kristalina Georgieva said in an interview Saturday with Bloomberg Television’s Haslinda Amin.
“Monetary policy is tightening, but fiscal policy could unintentionally go the other way,” she said in the interview at the conclusion of the Group of 20 finance chiefs meetings in Bali, Indonesia.
Officials at the meetings were quick to lay the blame squarely with Russia for the global economy’s woes. US Treasury Secretary Janet Yellen judged that about half of the surge in US inflation is due to energy costs, for which she said Russia is directly responsible through its war actions.