Sandra Pianalto´s pathetic farewell

In her final public appearance as leader of the Cleveland Fed, Sandra Pianalto said she was “very proud” of the U.S. central bank’s inflation-fighting record.

Her remarks Friday capped a long career within the Federal Reserve system. Ms. Pianalto joined the Cleveland Fed in 1983, rising to become its president in 2003. She is being replaced by Loretta Mester, who will speak later Friday.

Ms. Pianalto used her valedictory address to talk about inflation and its importance in the economy. “Price stability is a fundamental driver of economic growth,” the official said. She said the need to understand what’s happening with price dynamics has been a driving mission of the Cleveland Fed.

Ms. Pianalto was very upbeat about how the Fed has managed price pressures. “The Federal Reserve has successfully fulfilled its mission to keep high and variable inflation in check,” she said. But the central banker added the performance of prices over the economic and financial difficulties of recent years has been bracing.

Sandra, the fundamental driver of economic growth is not price stability but nominal stability. That´s the reason you have difficulties in understanding what´s going on at present!

One more inflation freak gone. Let´s see if Loretta Mester is less “fixated”.


One thought on “Sandra Pianalto´s pathetic farewell

  1. So how does Pianalto explain the 1960s, when we had explosive growth the USA (1965, real growth of 8 percent) and moderately higher inflation than now? Or 2008-2014, when inflation was dead, and growth limped along?

    The Fed is compared not only of inflation-hysterics, but economic history revisionists.

    I won’t even bother mentioning that Volcker declared victory in his war on inflation, when it hit 4 percent….

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