Walls’ Street: Is the Fed the world’s central bank?
NBR's Andrew Patterson and Jason Walls react to Niall Ferguson comments on the US Fed's “secret mandates” With special feature audio.
World renowned economic commentator and professor Niall Ferguson mused on Sunday Business if the US Federal Reserve has become the world’s central bank.
When asked about his thoughts on the part the Fed plays in the global economy, Dr Ferguson suggested the US central bank has a number of “secret mandates” which are keeping chairwoman Janet Yellen from hiking interest rates further .
“The Fed’s public mandate is to worry about US employment and price stability; the secret mandate is to ensure there aren’t stock market crashes. Its most important mandate in our time is the secret mandate to ensure international financial stability.”
There are probably elements of truth in Dr Ferguson’s theory.
But while the debate rages over whether or not the US will hike rates next month, there is a broad consensus that interest rates in Europe will not be rising for quite some time.
This week it was revealed business growth across the euro zone dipped to a 16-month low in May.
The low business growth follows weak inflation figures last month. European interest rates remain at rock-bottom levels.
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NBR Radio
Thu, 26 May 2016
Thu, 26 May 2016
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Walls’ Street: Is the Fed the world’s central bank?
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