Threats to the global economy have lessened a bit in recent months, but policymakers must remain on guard nonetheless, said the head of the International Monetary Fund. The IMF chief Rodrigo Rato has recently told the Peterson Institute economic think-tank that there was ‘greater consciousness of the uncertainties and paradoxes that lie behind our current prosperity’ following the recent turbulence in global financial markets. The interpretation by IMF chief came as investors have become anxious about the dangerousness of the housing slump in the US and its impact on the rest of the world. Speaking on the overall global economy outlook, the IMF chief further said, ‘I do not think that the risks are greater than they were six months ago. Actually, they are a little lower.’ In addition, Rato urged political leaders to take the strict steps needed to make progress on global economic imbalances and financial market stability. Recently, a report released by IMF had suggested that so far the economic slowdown in the US, the world’s largest economy and biggest importer, has had only a small effect on global economic activity. However, despite of improved global economic outlook, Rato cautioned that global economic policymakers must remain on their guard to potential dangers and not be lulled into a false sense of security. At the same time he praised role of central banks to curb inflation threats saying, ‘Central banks around the world have established credibility in taming inflation, and their task has been made easier over the last six months by lower oil prices. He further insisted that the risk that political events could disrupt the global economy remains. The head of the IMF pointed out that the results of year-long discussions among five major economic players to address global economic imbalances will show a satisfactory outcome. However, he made it clear that the year-long talks between the US, China, European Union, Japan and Saudi Arabia would not produce any quick-fix solutions. On the issue of pursuing independent economic approaches by its member nations he said, ‘it was essential that members or groups of members do not treat this as an opportunity to press for their own preferred approaches at the expense of the consensus that is needed to make any changes at all.’ The speech was delivered ahead of the spring meeting of the IMF’s governing council of finance ministers and central bank governors in Washington this weekend. This forthcoming meeting is important as economic heavyweights will examine the state of the world economy and the IMF reform proposals. In the meanwhile, IMF has announced that it has approved the first IMF finance for Lebanon, backing a $77 million emergency loan to help rebuild the country after last year’s conflict with Israel.