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Sunday, July 03, 2011

The You're On Your Ownership Society

Richmond Federal Reserve president Jeffrey Lacker says the Fed should forget about the unemployed and focus on inflation:

Fed’s Lacker: Central Bank Needs to Focus on Inflation, Not Jobs, WSJ: The Federal Reserve should focus on keeping prices under control, leaving the government to try to boost the U.S. economy and jobs, Richmond Federal Reserve Bank President Jeffrey Lacker said in an interview Friday.
Though frustrated by a recovery that continues to be slow and choppy two years after the recession ended, Lacker said further monetary stimulus by the Fed would likely show up “almost entirely” in inflation, which is already too high. ...
[T]he Fed official urged President Barack Obama and Congress to come up with a credible long-term plan to cut the budget deficit without worrying too much about the short-term effects on growth.

The Fed is worried about inflation, Congress is worried about the deficit, but who is worried about the unemployed? I don't mean worried in the sense of acknowledging it's a problem and saying empathetic things -- oh those poor unemployed, too bad for them -- I mean worried enough to try to do something about it.

    Posted by on Sunday, July 3, 2011 at 09:45 AM in Economics, Inflation, Monetary Policy | Permalink  Comments (72)


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