Fed's independence & credibility headache. Is Kevin Warsh a cure or a crisis trigger?
Significance of the article The US dollar is the major currency that drives the global monetary and economic system. Therefore, the governance of the US central bank, the Fed, being the guardian of the dollar through its monetary policy is of prime importance to the global economy because any change in the flow of the dollar supply and prices caused by the Fed has the potential of shocking all corners of the global economy. Therefore, it is the standard practice of financial dealers and investors around the globe to speculate on Fed's monetary policy and carry on deals on the dollar. As Kevin Warsh is expected to assume duties as the new Fed Chair for a new term of four years beginning 15th this week, such speculations have become a global event. Therefore, this article will help formation of strategies to deal with the dollar and Fed policies under the Fed Chair Kevin Warsh. Article's background and purpose The non-stop headache suffered by central banks world over is how ...