Rajan – Fed hikes ease stimulus pressure globally

Former RBI governor Raghuram Rajan, while speaking to Bloomberg, said the Fed policy tightening will help easy pressure on other major central banks to keep up their own ‘aggressive’ stimulus.

Key quotes

The expectation is that the dollar will remain strong and that certainly is consistent with the Fed being first out of the box in normalizing policy

Central banks are now in a ‘delicate position’

The Fed will need to ‘tread very carefully’ in the current political environment

The Fed will do what it thinks is right