- Financial journalists are reporting on Kevin Warsh's arguments within the FED, as he presides over his first meeting and discusses potential impacts on market expectations.
- Trump appointed Kevin Warsh as Fed chair amid central banks overshooting targets, while global economic pressures mounted due to the Iran war and international rate hike pressures.
FED and Indonesia Discuss Central Bank Operations and Monetary Policy Failures
What happened
The Federal Reserve and officials from Indonesia discussed a model for central bank operations and reviewed past monetary policy failures. An independent review of a central bank's COVID-19 policy found that the initial response curdled into a year-long failure to notice the economy had recovered. The review noted that inflation had reached 7.3% and unemployment had fallen to 3.2%, leading to an unnecessary recession.
From interest.co.nz
Why it matters
The independent assessment detailed how the central bank's reliance on the offshore quantitative easing playbook might have been flawed. The report argued that in a liquidity crisis, direct cash injections into the economy are more beneficial than cheap credit alone.
Amid global economic pressures, the FED continues to navigate market expectations regarding its policy direction.
From interest.co.nz
Who's involved
How it developed
Newest first. Tap a step to see who reported it.- HSBC analyzes Indonesian market currency risks as FED rate hikes affect Indonesian equity returns.Sub-event
FED and Indonesia discuss a model for central bank operations and review monetary policy failures.1 source
Keep exploring
Part of
Trump appointed Kevin Warsh as Fed chair amid central banks overshooting targets, while global economic pressures mounted due to the Iran war and international rate hike pressures.Also in this story
- The FED and Jerome Powell are involved in policy shifts amid the Iran conflict.
- Bank of America urges the Federal Reserve to raise interest rates amid ongoing global economic pressures and geopolitical concerns.
- Warsh spoke at the ECB Forum in Sintra while monitoring Canada's jobs report and amid Iran war energy shocks.
- A Reuters poll, OECD data, and IMF support highlight ongoing monetary policy discussions amid geopolitical risks.
The entities involved
Related events
- Central bank manages national payment infrastructure in Indonesia.
- A central bank meeting held in Jakarta guides Indonesia's national policy.
- Central banking discussions at Jackson Hole highlighted monetary policy challenges and liquidity risks, citing Silicon Valley Bank.
- FED issues warnings regarding central bank credibility.
- Bank Indonesia monitors private sector credit demand and liquidity in securities.