Washington: The global financial system faces several major transitions accompanied by substantial risks, the International Monetary Fund (IMF) has warned. "The first one is the transition in the United States from a prolonged period of monetary accommodation towards a normalisation of monetary conditions," reported Xinhua citing Jose Vinals, head of the IMF's Monetary and Capital Markets Department during a press conference Wednesday to unveil its Global Financial Stability Report. "This process will be unprecedented and complex ... Containing longer-term interest rates and market volatility has already proven to be a substantial challenge, as shown by the sharp rise in bond yields and volatility since May," the IMF's financial counsellor said.