Global economy in better place after fed cuts, trade progress: Ex-RBI governor Raghuram Rajan

On the trade deal, Raghuram Rajan said there’s some progress, but it will not be a permanent solution and won’t be something that many people want to see.

Hopes of a trade deal between the U.S. and China and a series of interest rate cuts by the Federal Reserve are making the world a much better place in the short term, former Reserve Bank of India Governor Raghuram Rajan said.

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“The Fed has been very sensitive to a lot of concerns about growth,” Rajan said in an interview to Bloomberg TV’s Haslinda Amin in Singapore. “It has done a series of insurance cuts. That seems to have reassured markets even while they were waiting to see some resolution to the trade imbroglio.”

On the trade deal, he said there’s some progress, but it will not be a permanent solution and won’t be something that many people want to see.

In some sense “we are in a much better place” than where we were last year in the short run, said Rajan.