Trying to sell the view that all´s calm and quite in the “Kingdom of Denmark”, Jon Hilsenrath writes “The Decline of Dissent at the Fed”. The caption of Hilsenrath´s piece is “In an interview, the new centrist in Dallas backs slow rate hikes, as officials with dissenting views have departed”, where we read:
The Fed needs to keep raising short-term interest rates to diminish risks to the economy and markets of “excessive accommodation,” Mr. Kaplan told the Journal on Monday. However, fragile and interconnected financial markets, slow global growth, and the perils of driving the economy back into recession all mean the Fed can’t move aggressively, he said.
“We want to try to normalize [interest rates] as fast as we can,” Mr. Kaplan said in a Dallas office stuffed with memorabilia from his home state of Kansas and with management “how to” books he wrote at Harvard. “But we have to be patient and gradual.”
Yes, dissent has diminished. They´re all of the same view, having embraced the monetary policy framework that Kocherlakota has aptly named “gradual accommodation”.
Update: The new meaning of dissent: Difference in desired speed of “normalization”