Economics
Powell Says Emerging Markets Equipped to Navigate Turbulence
- Fed Chairman says path for gradual hikes is well understood
- Says U.S. monetary policy not major determinant of EM flows
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The Federal Reserve’s gradual push towards higher interest rates shouldn’t be blamed for any roiling of emerging market economies, which are well placed to navigate the tightening of U.S. monetary policy, Fed Chairman Jerome Powell said.
In a speech that argued U.S. decision-making isn’t the major determinant of flows of capital into developing economies, Powell said the influence of the Fed on global financial conditions should not be overstated, despite it being blamed five years ago for the so-called taper tantrum.