Indonesia hopes new Fed chief would have good communication skills

Jakarta (ANTARA News) - Indonesia hopes the new chief of the Fed would possess good communication skills to make issues clear, preventing market players from speculating global economic condition by, Finance Minister Sri Mulyani said.

"We hope the chosen person will be the one who would be calm in order to make the statement clear and speaks with data, enabling the market to make clear prediction and avoid speculation," she stated here on Thursday.

She noted that the Feds current leadership had shown good communication skills, so that the impact of all normalization policies of the US central bank on exchange rate could be projected well.

In connection with the US central banks new decision to maintain its reference rate, Mulyani hoped that the correct direction of the policy could be continued in the future.

"This will affect global market players sentiment on perception towards the US policy and the sentiment of countries outside the US. We know the direction is towards normalization, but its speed cannot as yet be ascertained, and it will be done and when it will happen," she remarked.

Mulyani added that the momentum would be used by the Indonesian government to strengthen national economic foundation so that it would not rely too much on global conditions, such as the one in the US.

"Indonesia will continue to strengthen its foundation to avoid being affected by the condition. We will communicate our policies well in connection with deficit and financing in terms of fiscal policies as well as monetary and readiness of other financial sectors," she added.

The Fed, or the US central bank, decided on Wednesday to maintain its reference rate despite speculation on the appointment of the Feds next chief by President Donald Trump.

Trump has just concluded interviews with five candidates to select the next chief of the Fed. They include current Fed governor Jerome Powell, Stanford University economists John Taylor, former Fed governor Kevin Warsh, director of the White House National Economic Council Gary Cohn, and current Fed chief Janet Yellen, whose term will expire in February 2018.

Several US media outlets reported that Trump would most likely appoint Powell, who is a Republican and former US finance department official, for the post.

If indeed Trump appointed Powell, it is likely that he would continue Yellens gradual and prudent approach to tighten monetary policy.

Source: ANTARA News

Related posts