Mexican deputy cautious of data-dependent Fed policy
Manuel Sánchez sees potential for smooth tightening
If interest rate increases in the US are both anticipated and gradual, then any resulting global volatility could be "contained", but the Fed could still have to move more quickly than it intends, Bank of Mexico deputy governor Manuel Sánchez warned on May 13.
Addressing a Global Interdependence Center event in Madrid, Spain, the deputy governor said markets would likely "price in" rate changes ahead of time if the Fed takes the "incremental" approach to tightening policy it has suggested.
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