Seeing more weakness in global economic activities, Stephen Roach, non-executive chairman of Morgan Stanley Asia said he feared a recessionary relapse in the US over the next six to nine months. "The Fed policy wasn't effective in addressing global issues. Its action will have limited impact. The Fed doesn't have realistic set of options that will help US economy. More over, Europe is lacking the will to fix fiscal flaws thus there are concerns over the Europe debt situation and the future of the European Monetary Union (EMU)," he said.
The west effect! As the dollar climbed overseas, the Indian rupee has dipped drastically to its lowest in more than 28 months on Friday. Commenting on the issue, Roach said most emerging markets are dependent on external demand in major developed markets and any weakness in the latter will impact the growth in the former. "We will continue to see downside growth risks in major emerging markets. However, we are relatively optimistic on the Indian growth prospects as we see around 6-7% growth here," he told CNBC-TV18 in an exclusive interview. Below is an edited transcript of his interview with Udayan Mukherjee and Mitali Mukherjee. Also watch the accompanying videos. Q: What did you make of FedDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
