World economy doing better after Fed cuts, trade progress: Raghuram Rajan

The Fed last month cut interest rates for a third time this year, citing a combination of trade-policy uncertainty, slowing global growth and below-target inflation

Hopes of a trade deal between the US 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.

“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.”

The Fed last month cut interest