IMF says Covid support has left world open to new financial crisis
The emergency support provided by central banks and finance ministries during the Covid-19 pandemic has fuelled speculation, leaving the world vulnerable to another financial crisis, the International Monetary Fund has warned.
Policymakers were faced with a “challenging” trade-off between continuing to support economic activity while preventing unintended consequences and medium-term financial stability risks, the IMF said in its half-yearly Global Financial Stability Review (GFSR).
Noting that share prices appeared to be overvalued and house prices had risen rapidly in many countries, the Washington-based body said investors were becoming increasingly concerned about the economic outlook amid rising virus infections and greater uncertainty about the strength of the recovery, particularly in emerging markets.
Warning signs – for example, increased financial risk-taking and rising fragilities in the nonbank financial institutions sector – point to a deterioration in the underlying financial stability foundations.
If left unchecked, these vulnerabilities may evolve into structural legacy problems, putting medium-term growth at risk and testing the resilience of the global financial system.
Tucker Carlson has claimed the cancellation of thousands of flights by Southwest Airlines was “a direct consequence” of the Biden administration’s vaccination mandate for federal workers.
Southwest is a private company, not subject to federal vaccine rules.
On his primetime Fox News show on Monday night, Carlson also said a group of Florida air traffic controllers – who are subject to federal rules – “apparently” walked out on Friday to protest against Covid-19 rules, contributing to difficulties facing Southwest passengers.
Local media has reported that the head of Jacksonville Aviation Authority rejected reports of a walkout.
Resistance to vaccines and other Covid-19 public health measures is strongest in Republican states, as politicians and media figures, Carlson prominent among them, seize on the issue. Carlson has also repeated conspiracy theories about negative health effects from vaccines. It is not known whether he is vaccinated himself.
Read more of Martin Pengelly’s report here: Tucker Carlson blames Southwest flight disruption on Biden vaccine mandate