In his regular update to G20 leaders before their summit on Sept. 9-10, Klass Knot, the chairman of the Basel-based Financial Stability Board (FSB), widely known as the global financial watchdog, warned: “There will certainly be further challenges and shocks facing the global financial system in the months and years to come.”
Knot added: “The global economic recovery is losing momentum and the effects of the rise in interest rates in major economies are increasingly being felt.” Knot did not clarify how the U.S. Federal Reserve’s decision to keep interest rates sky high will affect these prospects.
