International Monetary Fund (IMF) Director Kristalina Georgieva urged the US Federal Reserve (Fed) to be extremely cautious in its policies and wary of its impact on the rest of the world.

Georgieva, in an interview with Reuters during her visit to Saudi Arabia, stated that the global recession can be prevented with the right fiscal policies.

Pointing out that global recession can be prevented if the fiscal policies of governments are consistent with monetary policy tightening, Georgieva stated that there may only be countries that will enter recession next year.

Georgieva urged the Fed to be extremely cautious in its policies and be mindful of its impact on the rest of the world, adding that the Fed’s responsibility is “very high”.

It was noteworthy that IMF Director Georgieva’s call to the Fed came after the United Nations (UN) called on central banks to stop interest rate hikes.

The United Nations Conference on Trade and Development (UNCTAD), in its report released today, stated that central banks in developed countries such as the Fed and the European Central Bank (ECB) continue to raise interest rates, risking pushing the global economy into recession and then into a prolonged recession.

In the report, it was stated that any thought of bringing prices down with higher interest rates without creating a recession was a “careless gamble”.