Carney: Expectations of Fed tightening could trigger ‘sharp adjustment’ in financial markets
FSB chairman highlights ‘ongoing disconnect’ between financial markets and real economy
Expectations of tighter monetary policy in the United States could trigger a "sharp adjustment" in financial market prices, Mark Carney warned today, in a letter to G-20 finance ministers and central bank governors.
Writing in his capacity as chairman of the Financial Stability Board (FSB), Carney highlighted the importance of looking beyond the fault lines the caused the crisis and addressing the "constantly evolving risks and vulnerabilities in the global system".
"The ongoing disconnect
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