BFM: Taper first, rate hikes comes much later
by BFM: The Business Station | 30 August 2021 | In The News
The Jackson Hole Symposium meeting happened over the weekend, where prominent central bankers, finance ministers, academics, and financial market participants from around the world converged to discuss economic developments and policies albeit virtually. The highlight was the speech by Fed Chair, Jerome Powell. Prof. Hans Genberg, Professor of Economics at Asia School of Business, weighs in on the key takeaways from this event.
“…the theme of the conference suggests that policymakers are cognizant of growing unevenness and the need to find appropriate policy responses. My own view on that is that these policy responses are primarily fiscal in nature. Central banks can provide support in the form of analyses and recommendations, but their involvement must not be such as to distract them from pursuing their primary objectives of macroeconomic and financial stability because if they go too far in other directions, they may lose their independence,” said Prof. Genberg.