IMF Director Sees No Slowdown in Lending Pace

International Monetary Fund Managing Director Kristalina Georgieva stated that "the fund does not yet see enough banks retreating from lending to push the Federal Reserve to change its course regarding interest rate hikes." In an interview with CNBC, she added that "the absence of a clear slowdown in lending, coupled with a strong U.S. jobs report, will lead to further interest rate increases." She noted, "The pressure coming from rising incomes and the unemployment rate remaining at a very low level means that the U.S. central bank has to stay on the same path." She predicted that the unemployment rate in the United States will exceed 4% and reach 4.5%.