Federal Reserve Bank of Dallas President Richard Fisher said the Fed will aid other economies by spurring U.S. growth and focusing on its mandate to ensure full employment and stable prices.
“If we’re strong, others will benefit from it,” Fisher, who votes on monetary policy in 2014, said today in a speech in Fort Worth, Texas.
Policy makers this week made a second straight cut in bond buying, with the Federal Open Market Committee reducing monthly Treasury and mortgage bond purchases to $65 billion from $75 billion, citing gains in the labor market.
India central bank Governor Raghuram Rajan warned yesterday of a breakdown in global policy coordination after the Fed further cut stimulus, weakening emerging-market currencies from the rupee to the Turkish lira.
Rajan, a former chief economist at the International Monetary Fund, called for greater cooperation among policy makers. The Fed’s Jan. 29 statement made no mention of developing economies.
“International monetary cooperation has broken down,” Rajan, 50, said in an interview in Mumbai with Bloomberg TV India, noting how emerging markets helped pull the global economy out of crisis starting in late 2008. “Industrial countries have to play a part in restoring that, and they can’t at this point wash their hands off and say we’ll do what we need to and you do the adjustment.”