For as much as the world runs on technology, there is nothing like personal meetings to determine if co-operation is the name of the game. When a new CEO is elected, does he/she have similar values as the past CEO, what relationship do people have?
In an article by Francesco Canepa and Balazs Koranyi of Reuters, the European Central Bank’s Annual gathering in Sintra, Portugal (the Federal Reserve has an August meeting in Jackson Hole, Wyoming) new US Federal Reserve Chair Kevin Warsh attended and made a good impression.
Officials believe Mr. Warsh’s outreach as a sign the Fed would stay engaged on the global state, easing fears of a retreat from the international forums that anchor central bank co-operation.
The reassurance was significant, that the White House will be committed to the international co-ordination that has long been a pillar of global monetary policy.
The Federal Reserve remains the ultimate provider of dollar liquidity in times of financial stress and for some countries, the custodian of a substantial share of their gold reserve.
It is also the most influential voice in global debates on monetary policy and financial regulation.
Many of the European bankers had a close working relationship with former Chair Jerome Powell. Several central bankers who have known Mr. Warsh since his time as a Fed governor between 2006 and 2011, or through his involvement in the Group of Thirty consultative body, said they recognized the same policy making they had dealt with for years.
Linking to dividend paying stocks, it is sometimes easier to focus on whether the company makes profits to pay dividends, but companies are made of people and relationships matter. Part of your evaluation of the business is the people of the company and if they have what bankers classified as character.
There are more questions than answers, till the next time – to raising questions.