Fed considers emerging markets

NUSA DUA: The US Federal Reserve does consider the impact of interest rate hikes on emerging markets when setting policy, but the increases are the “right course of domestic policy” for the world’s largest economy, said a top Fed official. The comments by Fed Vice Chair Randal Quarles came as some emerging markets face increasing pressure this year as higher US interest rates draw foreign capital away and due to fears of fallout from a tariff war between the US and China. The Fed has also been at the receiving end of criticism from Trump, who on Thursday called its interest rate increases a “ridiculous” policy. Those surprisingly caustic remarks came a day after the president told reporters that the “Fed has gone crazy.” “If you look around the world, I think the Asian region as a whole is reasonably strong relative to certain areas in the past,” Quarles said.  

Published in The Express Tribune, October 14^th, 2018.

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