The fluid forces on a centrifugal impeller rotating and whirling in a vaned diffuser are analyzed on the assumption that the number of impeller and diffuser vanes is so large that the flows are perfectly guided by the vanes. The flow is taken to be two dimensional, inviscid, and incompressible, but the effects of impeller and diffuser losses are taken into account. It is shown that the interaction with the vaned diffuser may cause destabilizing fluid forces. From these discussions, it is found that the whirling forces are closely related to the steady head-capacity characteristics of the impeller. This physical understanding of the whirling forces can be applied also to the cases with volute casings. At partial capacities, it is shown that the impeller forces change greatly when the flow rate and whirl velocity are near to the impeller or vaned diffuser attributed rotating stall onset capacity, and the stall propagation velocity, respectively. In such cases the impeller forces may become destabilizing for impeller whirl.