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No dollar impact seen in economy, markets-Poole
Thu Jan 20, 2005 12:25 PM ET
TUPELO, Miss, Jan 20 (Reuters) - Federal Reserve Bank of St. Louis President William Poole said on Thursday he has not seen a large impact on the economy or financial markets from the weaker U.S. dollar, and was not concerned about excessive risk-taking in the markets.
"I do not see that the weaker dollar has had any significant impact on the aggregate economy or on the stability of financial markets," Poole told reporters after a speech to economic forecasters in Mississippi.
Asked whether he believed there was recklessness in U.S. financial markets that could put economic growth at risk, Poole said: "I am not concerned about it, because the markets do a pretty good job."
He also said unexpected events could cause Fed policy-makers to depart from a measured pace of interest rate increases, outlining hypothetical cases where the central bank could move in any direction.
"The risks are two-sided, we could find that things could happen like an unexpected rise in inflation pressure," Poole said, adding there was also a possibility that unexpected events could lead the Fed to either pause or cut rates.