Connect with us

Politics

Fed at risk of falling behind, says former New Zealand central bank governor

 


The US Federal Reserve is at risk of falling behind on interest rates, a former Reserve Bank of New Zealand governor told CNBC on Friday.

“Inflation is rising quite high, labor markets are tight in the United States and the question is how transient the inflation rate is and how transient is not,” Donald Brash said on CNBC’s “Squawk Box Asia”.

Brash, who was governor of New Zealand’s central bank between 1988 and 2002, said the Fed doesn’t just delay rate hikes, it also keeps pumping money into the economy and that should continue until next year.

“I am a little worried that they are late,” he said.

After their meeting in early November, Fed officials said the U.S. central bank would start slowing its bond purchases to a rate of $ 15 billion per month, ending the bond buying program in the United States. mid-2022. After that, the door would be open. for the Fed to start raising rates.

But, the minutes from the November session indicated that Fed members would be willing to hike interest rates earlier than expected if prices continued to rise.

Market participants now expect the central bank to discuss at next month’s meeting whether it should end its bond buying program more quickly.

CNBC Pro Stock Selections and Investment Trends:

The Fed took unprecedented steps to ease policy when the coronavirus pandemic struck early last year. He cut rates to zero and instituted a $ 120 billion monthly bond purchase program to support financial markets and the U.S. economy.

Other central banks have already started cutting some of the extraordinary levels of support they have given to their respective economies as a result of the pandemic. For example, the Bank of Korea, the State Bank of Pakistan and the Reserve Bank of New Zealand recently raised their rates. The recent New Zealand central bank rate hike was the second in as many months.

Commerce and geopolitics

In a broad interview, Brash also touched on the ongoing developments around the Comprehensive and Progressive Trans-Pacific Partnership, an 11-country mega trade pact, which includes New Zealand, formed in 2018 after Donald Trump withdrew the United States from the United States. Trans-Pacific Partnership a year earlier. .

China, the UK and Taiwan have all in recent months asked to join the trade pact in an effort to gain better market access. But analysts say US allies like Australia, Canada and Japan could block Beijing’s bid because they increasingly see China as a “strategic threat.”

“Well, personally I would like to see as many countries as possible in the CPTPP,” Brash told CNBC, adding that the trade pact was a “better trade deal” than the China-led Comprehensive Regional Economic Partnership.

When asked if there could be a further escalation of tensions between the United States and China, Brash said there was “a serious risk of this” happening.

“China is clearly the rising power,” he said. Brash explained that if China’s per capita income reached even half that of the United States, the Chinese economy would become considerably larger, which “obviously” created tensions.

Tensions between the two countries escalated under former US President Donald Trump, starting with trade and tariffs on billions of dollars in goods and spreading to other areas like technology and geopolitics .

US President Joe Biden and Chinese President Xi Jinping virtually met this month in the closest communication between the leaders of the two countries since Biden took office.

CNBC’s Patti Domm contributed to this report.

Sources

1/ https://Google.com/

2/ https://www.cnbc.com/2021/11/26/fed-risks-running-behind-the-curve-says-former-nz-central-bank-governor.html

The mention sources can contact us to remove/changing this article

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos

ExBUlletin

to request, modification Contact us at Here or [email protected]