Chief minister of central banks of emerging markets are beginning to lose patience with the Fed and their policy of ambiguity. Officials are urging Fed for an early raise interest rates, and finally to clarify the situation, which exerts strong pressure on the currency and stock markets in recent years. First assistant of head of the Indonesian central bank, Mirza Adityasvara, believes that uncertainty of Fed creates problems, and it is time to decide with a plan of action.
"There is restoring and tranquility in the market only if the Fed will be determined with decision and will make it clear to market participants that rates will be increased onсe or more times and then stop," - commented Adityasvara. The World Bank strongly disagree with this position, and considers that Fed's decision about the first rate increase for last 9 years, which will be released on September 16-17, will cause strong blow to the emerging markets. Famous economist Kaushik Basu has taken a neutral position, who supports the preservation rates at current levels. "We do not need panic in emerging markets", - says Mr. Basu.
In addition to uncertainty of the Fed's policy, following factors put pressure on the market: the economic crisis in China, as well as lower commodity prices in recent months. Against the background of aforementioned comments the head of the Mexican Central Bank, Augustine Kartenes, declared in an interview to Reuters that an increase in interest rates will indicate to growth of the US economy. Indian CB Chairman, Raghuram Ryan, told the WSJ: "The Fed should start to operate ahead of time and slowly, as otherwise the Federal Reserve will be forced to enhance the policy sharply."