On August 27, Jerome Powell of the US Fed announced a shift indicating a primary focus on employment over inflation, a move that will impact not just the United States of America but India and the entire world.
On Episode 46 of BIC Talks, Narayan traces the 20th century history of the US Federal Reserve, its defining mandate and focus, and how that have evolved over the decades. He then examines the recent developments in the light of the global financial crisis of 2008, and the COVID-19 pandemic-led economic crisis that the world is dealing with right now. With US unemployment at historic highs, Narayan discusses how the Fed’s move could lead to an economic recovery in the US in 2021.
Narayan will be returning to BIC Talks on Episode 47 to discuss the impact of the US Fed’s actions on India, emerging markets and investors.
Narayan Ramachandran is a columnist, emerging markets investor and polymath. Narayan writes a fortnightly column in Mint called A Visible Hand. He was here last on Episode 5 of BIC Talks, to discuss India’s double trouble with a pandemic-led crisis meeting a festering banking crisis.