5/11/2017, 12:47 PM (Source: TeleTrader)
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Fed's Dudley: Protectionist policy leads to dead end

Changes in the global trade regime can impact competitiveness across sectors, and the resulting large costs for some communities and households haven't been adequately considered and addressed, according to the president of the Federal Reserve Bank of New York. In his speech on Thursday at the Bombay Stock Exchange in Mumbai, India, William Dudley stressed exchange in goods and services is "promoting higher standards of living" and that greater protectionism would be "a dead end."

"Instead, we need to provide greater support to displaced workers so they can obtain the skills needed to find new well-paying jobs. We need to do better in preparing workers to deal with the challenges of globalization and technological change," he stated. Dudley, a permanent voting member of the Fed's monetary policy panel, noted expansion in trade reflects falling trade barriers, declining transport costs, and improved information and communication technology. 

For instance, India's rapid progress in agriculture and food security was facilitated by technology from the United States, including scientists, he explained and added that, on the other hand, Indian engineers and entrepreneurs bolstered the American tech sector. Some of them are leading the biggest companies, the policymaker said. "Trade barriers are a very expensive way to preserve jobs in less competitive or declining industries. They blunt opportunities in export industries and they reduce the affordability of goods and services to households," Dudley underscored.

Baha Breaking News (BBN) / IT