The MSCI Emerging Markets Index .MSCIEF, which measures stock performance, has rebounded 4% from its early February low, though it remains down on the year. Another index measuring emerging markets currency performance .MIEM00000CUS was still sharply lower, reflecting the slide in a range of currencies from Asia to Latin America.
The IMF has said its team will stay until Feb. 23 to provide broad technical advice. Lebanon has not requested financial assistance from the Fund as it draws up a plan to confront the crisis.
“Some participants expressed the concern that financial imbalances – including overvaluation and excessive indebtedness – could amplify an adverse shock to the economy, that the current conditions of low interest rates and labor market tightness could increase risks to financial stability.”
The proposal, which received a warm reception from policymakers, explained how the Fed could gradually reduce interventions in the market for repurchase agreements, or repo, and slow its balance sheet expansion.
The readout on Wednesday of the policy discussion, at which policymakers unanimously voted to keep interest rates unchanged in a target range of between 1.50% and 1.75%, also showed Fed officials were skeptical about any big rethink of the central bank’s inflation target.
The 19-country euro zone has for years stuck to a broadly neutral fiscal policy in its annual recommendations, despite repeated calls from the European Central Bank and slow-growth states for it to invest more.
FILE PHOTO: Shadow of a 3D-printed Facebook Libra cryptocurrency logo is seen near cryptocurrency representation in this illustration taken, September 13, 2019. REUTERS/Dado Ruvic/File Photo/File Photo