Is the Fed on Track?

federal reserve, monetary policy

federal reserve, monetary policyThat's more-or-less the question that asked Dean Baker, co-founder of the Center for Economic and Policy Research, and me after last month's FOMC press release.  Dean said yep.  I said…uh, not really.   Our full answers appeared recently in the online publication's  "Wealth of Opinions" column.  There's even a little poll at the end, allowing you to pick your favorite answer.  Of course you don't have to vote.  It's really entirely up to you.  I mean, I'm not trying to pressure you or anything like that.


No, really!

  • The Fed is on track for the next financial crisis.


    Gave you a 1+ George. Agree with you on the importance of the 0.25% interest being paid on the excess reserves parked at the Fed. This doesn't seem to get much discussion in the media. I think it is about $US2.5trn at the moment?

    You might find this discussion at the PG Peterson Fiscal Summit last week interesting:

    Fisher (former Dallas chair) seems like if was still on the Fed he would be voting in favour of a June rate rise. Larry points out that even if you start in June you wouldn't get a tightening effect on the economy due to a c.12 month lag until December 2017. They strongly disagree with Summers' recommendation to wait until you see "the white of inflation's eyes" before you start raising rates.

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  • James Nellis

    The vote was easy, your competition was weak.