Just because the Fed is telling us it won't cause the next US recession doesn't mean the coast is clear. Fragility is building in our interconnected global system. And the very fact that the Fed alone is powering ahead with interest rate hikes should be a source of concern. Fed Chairman Jay Powell's views on the Fed's role as global central bank make that clear.
Powell: The Fed isn't as powerful as you think
Here's what Powell said last week:
Since the Fed is the central bank of the world's largest economy and issuer of the world's most widely used reserve currency, it is to be expected that the Fed's policy actions will spill over to other economies...
But the influence of U.S. monetary policy on global financial conditions should not be overstated. The Federal Reserve is not the only ce...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.