US interest rate rise could hit vulnerable countries, IMF warns

Emerging economies should prepare for tough action from Federal Reserve, says fund

Higher US inflation could lead to a tougher than expected response from America’s central bank that would send tremors through financial markets and put vulnerable countries at risk, the International Monetary Fund has warned.

Adding to growing concerns about the sharp increase in price pressures being registered across the globe, the IMF said emerging market nations should brace themselves for muscular action from the US central bank, the Federal Reserve.

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