Top United States Publication Pitches For Raghuram Rajan To Head Federal Reserve
US President Donald Trump is expected to quickly announce a follower to Federal Reserve Chair Janet Yellen, whose term ends early next year.
All India|Press Trust of India|Upgraded: November 01, 2017
New Delhi: Can previous RBI guv Raghuram Rajan head the US Federal Reserve? Yes, he would be an ideal choice to lead the American central bank, states international financial magazine Barron’s.
US President Donald Trump is anticipated to soon announce a successor to Federal Reserve Chair Janet Yellen, whose term ends early next year. “If sports teams can hire the very best skill from around the world, why not central banks?” asked an article in Barron’s publication while pitching for Mr Rajan as the next head of the Federal Reserve.
The article regrets that “no place on the short list of potential candidates to lead the Federal Reserve is the current star among the world’s central bankers– someone who oversaw a sharp drop in inflation, the stabilisation of a currency, and a 50 percent jump in stock prices”. “Perhaps more important, his was a lonesome but prescient voice warning of a monetary crisis resulting from extreme risk-taking in credit derivatives– years before it struck,” it added.
There are precedents for reserve banks to be headed by non-citizens such as Canada-born Mark Carney at the Bank of England, the article stated, keeping that nobody is pitching for Rajan for the Fed post though he has actually been mentioned as a possible Nobel laureate in economics.
Mr Rajan, who at 40 was the first non-western and the youngest to become the chief economic expert at the International Monetary Fund, shot to huge fame three years after he forecasted a financial crisis at a yearly event of economic experts and lenders in the United States in 2005.
He was selected RBI Governor by the previous UPA government in 2013 and although he wanted a second term, he was not provided an extension– which most of his predecessors got– by the current NDA program.
He is presently the Katherine Dusak Miller Distinguished Service Professor of Finance at the Booth School of Business, University of Chicago.