Found 40 article(s) for author 'Federal Reserve'

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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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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Fed needs to be mindful of lags between monetary policy and real economy

Fed needs to be mindful of lags between monetary policy and real economy. Lawrence Summers, October 5, 2018, Video, “Lawrence Summers, former Treasury secretary under President Bill Clinton and Harvard University president emeritus, joins ‘Squawk on the Street’ to discuss where the Fed’s mindset is on interest rates, inflationary pressures and the biggest economic risks.Link

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‘Excessively High’ Equity Prices Are Biggest Risk

‘Excessively High’ Equity Prices Are Biggest Risk.  Martin Feldstein, August 24, 2018, Video, “Martin Feldstein, National Bureau of Economic Research chairman emeritus and a Harvard University economist, discusses the outlook for Federal Reserve monetary policy with Bloomberg’s Mike McKee at the Fed’s annual symposium in Jackson Hole, Wyoming.Link

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Save Low Interest for a Rainy Day

Save Low Interest for a Rainy Day. Martin Feldstein, July 26, 2018, Opinion, “President Trump told a national television audience last week that he disapproves of the Federal Reserve’s decision to continue raising short-term interest rates. He later repeated his concern in a series of tweets. In complaining publicly about the Fed, Mr. Trump is breaking decades of presidential precedent, and he is wrong on the substance. The Fed actually is behind the curve in normalizing short-term interest rates, and it should now raise the federal-funds rate at least four times a year.Link

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