Several key stock markets lost around 10% last week in a brutal correction that Lagarde said in the interview had been ‘inevitable’. She said the US tax reform “will operate like a kind of stimulus on the current economic situation” in the US which was already experiencing “strong” growth. This, in turn, would have “an impact on all of the world’s economies, especially on heavily indebted economies”, Lagarde said. “We are not at all in a pre-major crisis situation like we were in 2008,” the IMF chief added. The US Congress in December approved a tax reform package that will slash corporate tax to 21% from 35%.

Source: The Express Tribune February 18, 2018 04:41 UTC