While speaking on the sidelines of the IMF and World Bank‘s spring meeting in Washington, Adrian insisted he was not worried about the U.S. central bank’s actions or the world’s global financial stability overall. However, he stressed the financial market could be vulnerable to volatility.
“At the moment the market is moving somewhat sideways as people are trying to figure out what the next policy moves are going to be… but of course, we could see big moves if there is news coming out in terms of actions,” he added.
The IMF Director cited political and policy uncertainties in Europe and the U.S. as potential areas for concern.
“I am not worried (but) of course there can always be policy mistakes… and the (global financial stability) report focuses very much on the scope for potential mistakes,” Adrian said.
The report, published Wednesday, projected financial stability worldwide to improve and followed the stronger overall economic outlook forecast by the same Washington-based institute 24 hours earlier.
“The market overall is still taking an optimistic view hence getting the policy mix right is crucial for financial stability going forward,” Adrian concluded.
—CNBC’s Jeff Cox contributed to this report.
