Lagarrde says the world economy is recovering but fragile and “faces some downside risks.”

There is growing acceptance among Greece’s creditors that a restructuring of the country’s debt is inevitable, but only if Greece takes ownership of the bailout program by passing tough budget cuts and deep economic overhauls.

Greece has long bristled under Lagarde’s demands for politically unpalatable structural reforms — and this time is no different. During negotiations earlier this month over Athens’s latest bailout, Greek officials tried to boot the IMF from the so-called troika of creditors that also includes the European Commission and the European Central Bank.

Lagarde said that emerging markets are better prepared for the first Fed rate hike, having learned lessons from the taper-tantrum in May 2013.

She said she was pleased that Yellen has stressed that the timing of the first rate hike depends on the economic data.