In my comments today, I would like to discuss the apparent motivation for managers to create global financial institutions, which provides the background for a convergence of regulatory standards around the world. I would also like to mention briefly the approach that the Federal Reserve is taking with respect to foreign banks.
Concerns about inflation are amplified by worries about a faster tightening of global financial conditions. Advanced economies’ CBs are now close to the end in their ultra-accommodative policies pursued for many years. If the surge in inflation is more persistent than initially assumed, the CBs will be forced to react.