IMF official questions Fed’s global role in next crisis

DAVOS, Switzerland (Reuters) – A senior International Monetary Fund official publicly questioned on Thursday whether the U.S. Federal Reserve might feel constrained from lending a hand to other nations in the event of another global financial crisis.

IMF First Deputy Managing Director David Lipton made the comment at the World Economic Forum during a panel discussion about how to prevent another crisis, noting that a new crisis might make it politically hard for the Fed to act next time.

During the 2008 crisis, the Fed stepped in to help other nations’ central banks, extending large currency swap lines that effectively extended U.S. dollar liquidity to them.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.