- MarketPulse - https://www.marketpulse.com -

Ex-IMF Official Agrees Market Focusing Too Much on Fed

Investors have made too much of the Federal Reserve’s plans to start scaling back its asset purchases and emerging economies should instead focus on fiscal and structural reforms to make them more resilient, John Lipsky, the former first deputy managing director of the International Monetary Fund (IMF) said on Thursday.

“Too much can be made of the tapering issue, especially as it has been controversial how much impact QE3 (the Federal Reserve’s third round of quantitative easing) has even had on the U.S. economy and elsewhere,” Lipsky told CNBC from the Skybridge Alternatives Conference in Singapore.

Instead, he said those strains were mainly because of large current deficits in emerging economies and relatively moderate global growth.
Fed Chairman Ben Bernanke in May indicated the possibility of a reduction in the central bank’s bond buying program. The news hit emerging market assets and sent the Indian rupee to an all-time low.

via CNBC [1]

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza [6]

Senior Currency Analyst at Market Pulse [7]
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
Alfonso Esparza

Latest posts by Alfonso Esparza (see all [6])