Covid requires reset in pension fund assumptions, Federal reserve financial stability report
Commentary: Financial repression forces review
By Colin Robertson in London
Covid has led to large government budget deficits and cuts to unsustainably high company dividends. Policies to support economic growth have distorted asset markets. There is a need to fundamentally review the investment assumptions used in managing pension funds. Longer-term economic forecasts and assessments of policy-makers’ future actions will need to be combined with analyses of historical experience and scenario analysis. Denying reality could lead to greater problems.
Read the full commentary on the website.
Podcast: Federal reserve financial stability report
Central banks and governments around the world introduced a range of monetary and fiscal measures to mitigate the impact of the Covid-19 crisis. The Federal Reserve quickly lowered its policy rate to close to zero to support economic activity and took extraordinary measures to stabilise markets and bolster the flow of credit to households and businesses. Andreas Lehnert, director of the financial stability division of the Federal Reserve Board of Governors, discusses the full range of tools the Fed is using to support the US econom
Central banks and governments around the world introduced a range of monetary and fiscal measures to mitigate the impact of the Covid-19 crisis. The Federal Reserve quickly lowered its policy rate to close to zero to support economic activity and took extraordinary measures to stabilise markets and bolster the flow of credit to households and businesses. Andreas Lehnert, director of the financial stability division of the Federal Reserve Board of Governors, discusses the full range of tools the Fed is using to support the US economy.
Listen to the recording, or search ‘OMFIF’ on your smartphone’s podcast app.
