Found 43 article(s) for author 'Federal Reserve'

Is Politics Getting to the Fed?

Is Politics Getting to the Fed? Robert Barro, July 23, 2019, Opinion, “In the early 1980s, the chairman of the US Federal Reserve, Paul Volcker, was able to choke off runaway inflation because he was afforded the autonomy necessary to implement steep interest-rate hikes. Today, the Fed is clearly under unprecedented political pressure, and it is starting to show.Link

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It’s tempting for the Fed to move slowly. That would be a grave error.

It’s tempting for the Fed to move slowly. That would be a grave error. Lawrence Summers, June 4, 2019, Opinion, “The Federal Reserve will over the next several months make monetary policy decisions that are as consequential as any it has made since the financial crisis and Great Recession of 2007-2008. The temptation in a highly uncertain and politicized environment will be to move cautiously. Yet this would be a grave error in the current context, where a recession could be catastrophic and the odds of one beginning in the next year, while still less than 50-50, now appear significant and increasing.Link

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The Federal Reserve’s Current Framework for Monetary Policy:  A Review and Assessment 

The Federal Reserve’s Current Framework for Monetary Policy: A Review and Assessment. James Stock, May 24, 2019, Paper, “The Humphrey-Hawkins Act of 1978 instructs the Federal Reserve Board to “promote effectively the goals of maximum employment, stable prices, and moderate long‐term interest rates.” The methods by which this dual mandate of maximum employment and price stability is to be accomplished are left to the Fed. Those methods have evolved over time as the Fed and economists learned more about the theory and practice of monetary policy (Fuhrer et. al. (2018)).Link

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Let’s Keep the Federal Reserve Great

Let’s Keep the Federal Reserve Great. N. Gregory Mankiw, April 14, 2019, Opinion, “I have a confession to make: I love the Federal Reserve. And I suspect that, in their heart of hearts, most other economists love the Federal Reserve, too. But I fear our love may be in peril. We live in a time when many public institutions seem to be failing us. The White House is in constant turmoil, with extraordinarily high turnover among top staff members. Congress is as polarized as ever, not having done much over the past two years other than pass the mess of the 2017 tax bill. Even the Supreme Court appears less dispassionate and more partisan than it should be.Link

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The Case for Pausing the Interest-Rate Climb

The Case for Pausing the Interest-Rate Climb. Jason Furman, November 27, 2018, Opinion, “The Federal Reserve has done an outstanding job fulfilling its dual mandate of maximum employment and price stability. To keep the economy in this happy Goldilocks position, the Fed should hold off on raising rates at its December meeting and consider incoming data before deciding when—or even whether—to resume tightening.Link

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Raise Rates Today to Fight a Recession Tomorrow

Raise Rates Today to Fight a Recession Tomorrow. Martin Feldstein, November 26, 2018, Opinion, “Federal Reserve Chairman Jerome Powell will lay out a vision Wednesday for the course the Fed will steer through coming economic turbulence. So far, the Fed’s governors have appeared committed to their plan to continue raising interest rates, which they began in late 2015 after nearly a decade of holding them near zero. The federal-funds rate has jumped from 0.3% in January 2016 to 2.2% today, and the median forecast of the Federal Open Market Committee is that it will reach 3.4% by the end of 2021.Link

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