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Larry and his long-time colleagues, Derek Tang, Kevin Burgett and Jacqueline Dolson, co-founded MPA/LHM. They were Larry’s team at Monetary Policy Insights which Larry earlier had founded inside Macroeconomic Advisers.  The adventure began when Larry was a professor of the Economics Department at Washington University in St. Louis for 27 years, teaching macroeconomics and monetary theory […]

Overview The Fed’s balance sheet remained above $7.4tn as the NY Fed frontloaded the fortnight’s asset purchases before the holidays.

1) Overview. See our FOMC Briefing for views on Wednesday’s meeting. The Fed’s balance sheet was little changed at $7.2tn. 

1) SEP. The FOMC will add two new charts to “show how the balance of participants’ assessments of  uncertainty and risks have evolved over time.”

There are two, seemingly conflicting, themes in the FOMC’s current narrative about policy today and going forward. First: More monetary policy action will be needed.

The Fed’s new Strategy Statement and FOMC statement forward guidance has left open some key questionsabout execution. I explore some issues below and invite you.

It’s easy to see the attraction of make-up strategies. First, they allow for greater stimulus at the effective lower bound (ELB) because policymakers are committed

Fed Nominee Goodfriend Says U.S. Central Bank Must Stay Alert Bloomberg News on Jan 22, 2018 “What most defines his views, at least more accurately than the standard ‘dovish’ or ‘hawkish,’ would be an aggressiveness whenever inflation credibility is threatened in either direction,” former Fed Governor Laurence Meyer said in a note to clients following […]