US Federal Reserve Chair Jerome Powell
Commentary: Powell pivots to patience
By Darrell Delamaide in Washington
US Federal Reserve Chair Jerome Powell wanted to make sure everyone understood that the Fed has changed its stance and that patience is the new byword. Not gradual rises in interest rates, not balanced risks, but patience. The consensus statement following the Federal Open Market Committee meeting on January 30 included the word ‘patient’ with regard to any future ‘adjustments’ in...
Vitor Constâncio
Commentary: Euro – Success and vulnerability
By Kat Usita in London
Challenges facing Europe’s unfinished monetary union were discussed in a wide-ranging OMFIF London City Lecture with Vitor Constâncio, former vice-president, European Central Bank, Lucrezia Reichlin, London Business School, and Charles Goodhart, London School of Economics. Constâncio remains a firm believer in the euro’s success. But he recognises that the next downturn could be just around the corner, and that...
Commentary: Euro will not survive if Italy fails
By Desmond Lachman in Washington
An Italian debt default would trigger a European banking crisis with global economic and financial market ramifications. Italy is the euro area’s third largest economy. If it fails, the single currency cannot survive. It is also too costly for its European partners to save. However, the country’s new populist government is engaging in wishful thinking that somehow the country will grow its way out of its debt...