US Treasury Urges IMF and World Bank to Address Liquidity Pressures: U.S News & World Report Money

The US Treasury has called for new steps to be taken by the International Monetary Fund (IMF) and the World Bank in order to address liquidity pressures that have been exacerbated by the ongoing global economic crisis.

In a statement released on Tuesday, Treasury Secretary Janet Yellen emphasized the need for immediate action to provide financial support to countries struggling with mounting debt and limited access to capital. Yellen highlighted the importance of ensuring that the IMF and World Bank have the resources needed to assist countries in need, especially as the pandemic continues to wreak havoc on economies around the world.

The Treasury’s call for new steps comes as the IMF and World Bank prepare to hold their annual meetings later this month. Yellen urged both institutions to explore innovative solutions to address liquidity challenges, including the possibility of increasing the use of Special Drawing Rights (SDRs) to provide additional financial support to countries in need.

The IMF and World Bank have already taken steps to provide debt relief to low-income countries and mobilize resources to support the global recovery. However, Yellen stressed that more needs to be done to prevent a prolonged economic downturn and ensure that countries have the resources they need to weather the storm.

As the world continues to grapple with the economic fallout of the pandemic, the US Treasury’s call for new IMF and World Bank steps highlights the urgent need for coordinated action to address liquidity pressures and support countries in need. It remains to be seen how the institutions will respond to this call, but one thing is clear: decisive action is needed to prevent a further escalation of the crisis.

Stay tuned for updates on this developing story as the IMF and World Bank consider their next steps in response to the US Treasury’s call for action.