BoE Carney Warns US About Delaying Fiscal Policies

The Bank of England is concerned that U.S. fiscal policies are creating economic difficulties without any longer-term benefits, its governor said on Monday, weighing in as lawmakers in Washington scramble to avoid another government shutdown.

BoE Governor Mark Carney, speaking on PBS’s “Charlie Rose” show, said “kicking the can” on U.S. tax and spending decisions “doesn’t do anything to fix the longer-term fiscal problems, entitlement, and other problems in the United States.”

A budget impasse led to a partial U.S. government shutdown in October, while at the same time global financial markets braced for a possible U.S. debt default. On Monday, congressional aides said a deal could emerge in Congress on Tuesday that aimed to avoid a January shutdown.

There are still some “big, tough decisions” for U.S. lawmakers next year, Carney, the Canadian who took the helm of the BoE in July, said according to a transcript of the PBS interview. “So what concerns us the most is the system can create very difficult short-term situations without a longer-term benefit.”

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza