NY Fed's Geithner on U.S. monetary policy

In the speech 'U.S. monetary policy in the global financial environment' given on 9 March Timothy Geithner of the Federal Reserve Bank of New York said U.S. monetary policy may need to be tightened sufficiently to offset the downward pull on interest rates from robust official capital inflows.

"Policy would have to act to offset these effects in order to achieve the same impact on the future path of demand and inflation," said Geithner. "To do otherwise would run the risk that monetary policy

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