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 WASHINGTON (AP) - Globalization hasn't hobbled the Federal Reserve's ability to influence economic activity at home by lowering or raising interest rates, Fed Chairman Ben Bernanke said Friday. Yet, Bernanke said, increasingly connected financial markets around the world has certainly complicated the Fed's ongoing job of analyzing financial conditions and weighing their implications for monetary policy.
Those thoughts were contained in a scholarly speech Bernanke delivered to an economic summit in California. Copies of his remarks were distributed in Washington.
"Globalization of financial markets has not materially reduced the ability of the Federal Reserve to influence financial conditions in the United States," as some have argued, Bernanke said.
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