(Bloomberg) -- The head of the International Monetary Fund said the US economy is “definitely” headed for a soft landing thanks to the Federal Reserve’s “decisiveness” in taming inflation despite some pain from higher interest rates.

“It has brought the desired impact without pushing the economy into recession,” Managing Director Kristalina Georgieva said in an interview with Christiane Amanpour on CNN International to be broadcast Tuesday.

A cooling of both inflation and the labor market in the US after the steepest cycle of interest rate hikes in a generation has raised hopes that the world’s biggest economy may avoid a deep recession and opened the door for the Fed to cut rates this year. Bloomberg Economics says borrowing-cost reductions may start as soon as March.

Asked about Donald Trump’s 2024 election prospects and the potential return of his protectionist trade policies, Georgieva said policymakers need to help those hurt by globalization or risk stoking resentment and isolationism.

“We will see in the United States, in Europe, everywhere, a pushback against what makes us all wealthier and more secure — an integrated global economy,” she said 

As strategic rivalry ramps up between the US and China, the IMF has warned about the economic damage from fragmentation, which it has estimated may sacrifice as much as 7% of global gross domestic product. Georgieva said this threatens to cut off access to critical minerals needed for tomorrow’s green technologies.

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“If you end up not having access to them, that can be dramatically impacting your future competitiveness in a rapidly transforming world economy,” she said.

--With assistance from Eric Martin.

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