Sept. 17 (Bloomberg) -- Sri Lanka Central Bank Governor Ajith Nivard Cabraal spoke to Bloomberg Television’s John Dawson about the prospect of a tapering in bond purchases by the U.S.
Federal Reserve and candidates to take over as Fed chairman.
On Fed tapering:
“I think a modest tapering is on the cards. We should not be too concerned about the tapering, particularly because tapering would mean, John, that the U.S. economy is doing better. So we’ve got to understand it in that context.
‘‘The tapering off is an indicator that the U.S. is getting better economically, and that’s good for the entire world. I think if you take that approach, we wouldn’t get too nervous about this, and we would be able to manage the situation on a more long-term basis.”
When asked about Fed succession and Stanley Fischer:
“Stanley Fischer brings with him an enormous amount of experience as well as economic sense. I think he would be a very interesting candidate. At the same time, we’ve got to understand a person who understands the U.S. economy best would be the most suitable person, because the U.S. economy is an important economy -- the most important economy in the world right now.
‘‘In that sense, a person who has the political understanding of the way that the U.S. also works is extremely important, because any central bank governor has to be conscious of the country’s political situation as well when they take economic decisions. So in that context I think Stanley Fischer would need to understand the U.S. political system very closely, and if he can acquire that knowledge as well as have the necessary context to be able to deal across different facets of the political spectrum, he would be a very interesting candidate.”