Cleveland Fed’s Hammack: Dollar’s Status Depends On Rule Of Law, Effective Capital Markets, And Central Bank Independence
READ HERE On The Dollar s International Status: - The Dollar s Status Depends On Preserving The Fundamental Qualities That Underlie Its Strength, Qualities That Provide A Solid Foundation For Any Currency. This Includes Maintaining Central Bank Independence So We Can Deliver On Our Mission. - A Reserve Currency Has To Be More Than Trusted. It Has To Be Available, In Deep And Liquid Markets, So That Investors Can Choose To Move In And Out Of The Currency As They See Fit. On How The Fed Impacts The Dollar s Status: - The Fed s Independence, Along With Its Accountability To Congress, Is Critical To Maintaining The World s Confidence In Our Commitment To 2 Percent Inflation. - Delivering On Our Commitments Is An Important Way The Federal Reserve Helps The Dollar Remain A Reliable Store Of Value And That Americans Can Continue To Reap The Benefits Of Its Global Status. On Digital Currencies Replacing The Dollar - The Price Volatility Of Cryptocurrencies Makes Them A Less Certain Store Of Value Than The Dollar. On Monetary Policy: - Inflation Has Now Been Above Our Goal For Nearly Six Years, And The Pressures I m Seeing Appear To Be Relatively Broad Based, Reflecting Both Supply And Dema
READ HERE On The Dollar s International Status: - The Dollar s Status Depends On Preserving The Fundamental Qualities That Underlie Its Strength, Qualities That Provide A Solid Foundation For Any Currency. This Includes Maintaining Central Bank Independence So We Can Deliver On Our Mission. - A Reserve Currency Has To Be More Than Trusted. It Has To Be Available, In Deep And Liquid Markets, So That Investors Can Choose To Move In And Out Of The Currency As They See Fit.
On How The Fed Impacts The Dollar s Status: - The Fed s Independence, Along With Its Accountability To Congress, Is Critical To Maintaining The World s Confidence In Our Commitment To 2 Percent Inflation. - Delivering On Our Commitments Is An Important Way The Federal Reserve Helps The Dollar Remain A Reliable Store Of Value And That Americans Can Continue To Reap The Benefits Of Its Global Status. On Digital Currencies Replacing The Dollar - The Price Volatility Of Cryptocurrencies Makes Them A Less Certain Store Of Value Than The Dollar.
On Monetary Policy: - Inflation Has Now Been Above Our Goal For Nearly Six Years, And The Pressures I m Seeing Appear To Be Relatively Broad Based, Reflecting Both Supply And Demand. - I Expect That Monetary Policy Will Need To Move To A Restrictive Stance To Bring Inflation Back To 2 Percent In A Timely Manner. - I Prefer Getting To That Stance Through More Frequent Smaller Adjustments When Possible, Something Which Would Be Less Disruptive To Households, Businesses, And Financial Markets. This Strategy Would Also Reduce The Risk Of Having Policy Fall Behind Where It Needs To Be And An Inflationary Mindset Take Hold.