Rules Reign on Trump’s Fed List as Post-Crisis Economy Breaks Them
Bloomberg News on September 14, 2017
“Thinking through the transmission of monetary policy to inflation is high on the agenda” for the next Fed regime, said David Stockton, the Fed’s chief economic forecaster under former chairmen Alan Greenspan and Ben Bernanke.
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“The notion that truly rule-based of monetary policy is going to lessen the challenges of central banks or make their actions more clear probably isn’t right,” Stockton, who is now a senior fellow at the Peterson Institute for International Economics in Washington. “Quite often you are hit with shocks that a rule isn’t robust enough to deal with.”