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Federal Reserve

IMF warns of growing emerging-market risks as Fed nears liftoff

WASHINGTON - The IMF warned officials to protect their financial systems from possible instability as the U.S. Federal Reserve prepares to raise interest rates, saying shocks or policy missteps risk derailing the global economy and triggering equity market sell-offs. High debt levels at banks and other companies have left developing economies susceptible to financial stress and capital outflows, just as the Fed prepares to raise interest rates for the first time since 2006, the International Monetary Fund said Wednesday in its Global Financial Stability Report. "Emerging markets face substantial challenges in adjusting to the new global market realities from a position of higher...