Sixteen months after she used a Tokyo gathering of global policy makers to defend her institution against criticism it was purchasing too many assets, Fed Chair Yellen attends this week’s Group of 20 meeting in Sydney being lobbied to pay greater attention to foreign fallout as the U.S. slows its bond-buying.
What’s not changed is her response: A well-managed U.S. economy benefits the world and other central banks have tools to support their own economies. That’s disappointing counterparts such as India’s Raghuram Rajan and Gill Marcus ofSouth Africa, who criticized the lack of a synchronized global monetary policy as developing-nation currencies suffer their worst start to a year since 2010.
The Fed’s “job is not to make policy for India, it’s to make policy for the U.S.,” said Joseph Gagnon, a senior fellow at the Peterson Institute for International Economics in Washington and a former Fed economist. “Blaming other people for their problems isn’t very helpful.”
Almost three weeks since taking the helm of the Fed, Yellen, 67, makes her international debut as its chief when she joins fellow G-20 finance ministers and central bankers at the Feb. 22-23 talks. They meet in the wake of a decline in emerging-market shares and currencies on concern over softer economic growth. – full article HERE