'Why It's Tricky for Fed Officials to Talk Politically'
I think I disagree with Brad DeLong:
Why it's tricky for Fed officials to talk politically: Should speeches by Federal Reserve officials be limited to topics concerning monetary policy and financial stability, or should they be free to speak on any topic, no matter how politically charged it might be? It's an important question as the Fed prepares to announce next week what's looking like a significant change in its eight-year policy of zero-perecent interest rates.
Fed Chair Janet Yellen, for example, was sharply criticized for a speech last year highlighting what economists know about rising inequality and what might be done to overcome it.
This speech, which Yellen gave in October 2014, is still creating controversy. This week, it erupted again when UC Berkeley economist Brad DeLong defended Yellen against the charge that she's a "partisan hack," a description in the headline of a Washington Post story by Michael Strain after Yellen's speech. ...
Posted by Mark Thoma on Friday, December 11, 2015 at 09:06 AM in Economics, Monetary Policy, Politics |
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