Only Fed could respond to fresh downturn, Axel Weber says

Photo: Policy Exchange

The Federal Reserve is the only one of the world’s major central banks that could adjust policy to meet a new economic downturn, said former Bundesbank president Axel Weber.

“The only bank that has any room to manoeuvre is actually the Federal Reserve,” he said in a discussion panel on January 22 at the World Economic Forum at Davos.

“Central banks are on hold,” Weber added. “I think the ECB will never even leave negative territory if they don’t start raising rates this year.”


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