Banking isn't in a crisis - and the sector's challenges will help the Fed to fight inflation, IMF chief says

• The banking fiasco will help the Federal Reserve curb inflation, the IMF's managing director says.
• "The skirmishes in the banking sector are actually helpful," Kristalina Georgieva said Thursday.
• The turmoil will cause a tightening of credit conditions that slows price growth, she added.

There is no banking crisis – and unease in the sector will help the Federal Reserve to cool inflation, the head of the International Monetary Fund says.

Kristalina Georgieva said Thursday that last month's turmoil will aid the Fed in its war on soaring prices by leading to a tightening of credit conditions, as mid-sized banks try to shore up their balance sheets by raising their lending standards.