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Can former RBI governor Raghuram Rajan head the US Federal Reserve? Yes, he would be the ideal choice to lead the American central bank, says global financial magazine Barron's.
US President Donald Trump is expected to soon announce a successor to Federal Reserve Chair Janet Yellen, whose term expires early next year.
"Perhaps more important, his was a lonely but prescient voice warning of a financial crisis resulting from excessive risk-taking in credit derivatives – years before it hit," it added.
There are precedents for central banks to be headed by non-citizens such as Canada-born Mark Carney at the Bank of England, the article said, maintaining that nobody is pitching for Rajan for the Fed post, though he has been mentioned as a possible Nobel laureate in economics.
He was appointed RBI Governor by the previous UPA government in 2013 and although he wanted a second term, he was not offered an extension – which most of his predecessors got – by the current NDA regime.
He is currently the Katherine Dusak Miller Distinguished Service Professor of Finance at the Booth School of Business, University of Chicago.
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