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Fed's Influence on Global Financial Markets “Often Overstated” - Powell

Published 05/08/2018, 03:46 AM
© Reuters.  Fed's Influence on Global Financial Markets “Often Overstated” - Powell

Investing.com - The role of U.S. monetary policy in driving global financial conditions and capital flows "is often overstated," said Federal Reserve Chairman Jerome Powell, on Tuesday.

The pickup in both global growth and commodity prices are also factors, he said.

He made the comments at a conference jointly hosted by the Swiss National Bank and the International Monetary Fund in Zurich.

Powell said that the Fed should still remain alert to "risk sentiment" as monetary policy normalization occurs, adding that officials will try to avoid market disruptions by communicating its policy strategy "as clearly and transparently as possible."

"Fed policy normalization has proceeded without disruption to financial markets, and market participants' expectations for policy seem reasonably well aligned with policymakers' expectations...suggesting that markets should not be surprised by our actions if the economy evolves in line with expectations," he said.

Emerging market economies should be able to manage as advanced economies move toward tighter monetary policy, he added.

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