In a panel discussion on Dutch radio station BNR Nieuwsradio on Monday 26 August 2019, Bas Jacobs, Sijbren Cnossen Professor of Public Economics at Erasmus School of Economics, discusses among others last week’s meeting of central bankers in Jackson Hole, Wyoming.
Federal Reserve Chair Jerome Powell came caught between discord within the U.S. central bank over appropriate monetary policy and mounting outside pressure for more interest rate cuts. According to Jacobs it is wise that Powell did not disclose anything about a possible interest rate cut. ‘The U.S. central bank has to navigate between a president who constantly criticizes the central bank and thinks that the central bank should do what he wants, and at the same time the American economy is slowing down. However, the U.S. Central Bank wants above all to preserve its independence and does not want to give into Trump’s political threats’
Panel members Barbara Baarsma (Rabobank Amsterdam) and Bert Colijn (ING) and Jacobs also give their opinion on the topic that the Dutch government is considering pouring billions of euros in a new investment fund to finance future infrastructure and education projects. Citing government sources, the government would consider borrowing up to 50 billion euros for the fund as it looks to profit from historically low and even negative interest rates on its loans.
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Listen to the entire item of BNR Nieuwsradio, 26 August 2019 (in Dutch).