Fed Vice Chairman Donald Kohn believes that pledges to keep interest rates at a given level shouldn’t be unconditional and should change as the economy evolves.
Bloomberg: “Commitments to maintain interest rates at a given level must be properly conditioned on the evolution of the economy,” Kohn said today in remarks to a monetary conference at Carleton University in Ottawa, Canada. “Central banks cannot make unconditional interest rate commitments based only on a time dimension.”
Disclaimer: This page contains affiliate links. If you choose to make a purchase after clicking a link, we may receive a commission at no additional cost to you. Thank you for your support!
Leave a Reply