Powell to emerging markets: you’re on your own

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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