Forum: Don't expect cheap money to do it all

FRANKFURT, Germany — An international forum for central bankers is warning that the global economic recovery will need more than just support from the likes of the U.S. Federal Reserve to get past its current shaky stretch.

The admonition from the Bank for International Settlements comes as the Fed and the European Central Bank are signaling that more monetary stimulus could be on the way. The pro-stimulus message from Fed chair Jay Powell and ECB head Mario Draghi has helped send stocks higher in Europe and in the S&P 500 in the U.S. to a new record high.

But the Basel-based BIS is cautioning that governments need to bring other policies into the game — and that there are risks in relying too much on central bank stimulus such as interest rate cuts.

Those other policies include government spending where possible on growth-friendly infrastructure as well as pro-growth reforms such as slashing red tape for business.

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