TEST: International Monetary Fund


Part of the considerations that along the direction of monetary policy it is very easy to overstate what independence means we were discussing earlier some of the pressure's on the Fed from the president and the impact that has a markets let's talk a little bit about the pressure of the markets on the Fed L. measures the US has the highest interest rates as a central bank and as a bond issuer in the developed world maybe in the entire investment grade world how does that impact what the Fed does both both market forces and what other central banks do it I think there's two sort of dimensions to this the first is that since the financial crisis we've seen the Fed embracing a responsibility for being the world's Central Bank that was certainly true in the immediate aftermath of the financial crisis where you know a lot of the crisis era programs that the Fed put in place to provide funding we're really about funding the global financial system more than about funding American financial institutions meaning the concern was all

Coming up next