Financial Times FT.com

Kohn speech hints at call to drop dollar peg

By Krishna Guha in Washington

Published: June 26 2008 19:48 | Last updated: June 26 2008 19:48

Countries with overheating economies are contributing to inflation around the world by pushing up commodity prices, Don Kohn, the vice-chairman of the Federal Reserve, said on Thursday.

His comments came in a speech in which he appeared to call on fast-growing emerging markets to drop their exchange rate pegs to the dollar and adopt independent monetary policies – so they no longer import Fed monetary policy.

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