Nov
17
Wall Street Is Running the World’s Central Banks
By
Last week’s appointment of Neel Kashkari, pictured, to run the Federal Reserve Bank of Minneapolis as of January means a third of the Fed’s 12 district banks will soon be run by officials with past ties to Goldman Sachs Group Inc.
Photographer: David Paul Morris/Bloomberg
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Research shows financiers more likely to favor tighter policy
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Third of district Fed banks to be run by ex-Goldman bankers
Wall Street is again leading to the corridors of central banks.
From Minneapolis to Paris, investors and financiers are increasingly being hired to help set monetary policy less than a decade since the banking crisis roiled the world economy and chilled their public-sector employment prospects.
Academic studies of historical voting records at central banks suggest the new trend may mean an increased bias towards tighter monetary policy…
Wall Street Is Running the World’s Central Banks
