Bloomberg
Published Nov 07, 2019 12:16AM ET
Updated Nov 07, 2019 12:53AM ET
Global Economy in Better Place After Fed Cuts, Trade Progress, Ex-RBI Governor Says
(Bloomberg) -- Hopes of a trade deal between the U.S. and China and a series of interest rate cuts by the Federal Reserve are making the world a much better place in the short term, former Reserve Bank of India Governor Raghuram Rajan said.
“The Fed has been very sensitive to a lot of concerns about growth,” Rajan said in an interview to Bloomberg TV’s Haslinda Amin in Singapore. “It has done a series of insurance cuts. That seems to have reassured markets even while they were waiting to see some resolution to the trade imbroglio.”
The Fed last month cut interest rates for a third time this year, citing a combination of trade-policy uncertainty, slowing global growth and below-target inflation. The U.S. and China have been trying to negotiate a limited trade deal, but it may not be clinched until December over indecision on where to sign the deal.
Rajan said there’s some progress on the trade deal, but it will not be a permanent solution and won’t be something that many people want to see.
In some sense “we are in a much better place” than where we were toward the end of last year, said Rajan.
Here are some more points from the interview:
Written By: Bloomberg
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