The Pollyanna Fed

Through the mouth of John Williams:

Conclusion

It’s been a long road back from recession.  The recovery has been slower than I would have liked, and there are a thousand different views on the Fed’s decision making.  But the path was eased by strong monetary policy(!), and it helped us to get where we are today—on the road back to full employment and price stability.

Thank you.

3 thoughts on “The Pollyanna Fed

  1. What is meant by the word “strong”?

    The US economy posted some of the lowest rates of inflation in the postwar era. Microscopic inflation and interest rates are a sign money is tight, and expected to stay tight.

    If the Fed was a doctor, they would put an anorexic on a low-fat diet. Too much fat is bad for the heart you know.

  2. Sometines I think that the Williams’, Fisher’s and Bullard’s etc mouth off quite so much because they aren’t actually listened to inside the FOMC meetings themselves. They then take out their frustration in public. The six permanent staff are the key. Still, they do provide plenty of material for our blogs!

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