WASHINGTON (MarketWatch) -- Global economic policy makers upset about the Federal Reserve's monetary policy stance have an ally in Esther George, the president of the Kansas City Federal Reserve Bank. In a speech in South Africa, George said she was worried that the costs of the Fed's bond-buying "may not be confined to just the countries with expansive policies." The Fed's asset purchases "can influence other countries by distorting their exchange rates and balance of payment positions, capital flows and rates of credit expansion," George said. She called the Fed's decision to reduce the pace of its asset purchases earlier this week by another $10 billion "a modest but positive step," but said risks would remain until policy normalizes. In a separate speech, Raghuram Rajan, the chief of India's central bank, said the Fed must factor in the effect of its policies on the rest of the world and not just the domestic U.S. economy. He complained that international monetary cooperation "has broken down." With the prospect of higher interest rates in the U.S., investors are pulling back from many emerging economies, and many, like India, have responded by tightening monetary policy.作者: aimei 时间: 2014-1-31 12:44
