Lagarde, Yellen warn of rising risk of financial instability

“When the Fed decides it's time to begin raising rates, we could see a sharp jump in long-term rates,” US Federal Reserve Chair Janet Yellen said on 6 May, addressing a conference on finance and society hosted by the International Monetary Fund (IMF). “We're trying to communicate clearly about our monetary policies so we don't take markets by surprise,” she said, answering a question posed by IMF Managing Director Christine Lagarde, who was sitting next to her. Yellen said “we…