Fed rate hike may lead to a 'vicious cycle': IMF chief

Washington

THE International Monetary Fund voiced concern on Wednesday about the global economy, weakened by China's slowdown and facing a potential "vicious cycle" from a looming US interest rate hike.

"On the economic front, there is... reason to be concerned. The prospect of rising interest rates in the United States and China's slowdown are contributing to uncertainty and higher market volatility," IMF managing director Christine Lagarde said in a speech in Washington, according to the prepared text.