Matthew Schaffer
Matthew Schaffer Articles
Monetary rules indicate interest rates are too low. September’s FOMC meeting offers an opportunity for the Fed to correct course.
Continued inflation, hawkish regional bank presidents, and 11 of 12 monetary policy rules suggest the Fed should raise rates. The price of the Fed’s “patience” could be paid economy wide.
The Federal Open Market Committee is widely expected to leave its policy rate unchanged at this week’s meeting. The CME Group puts the odds that the FOMC will continue to target the federal funds rate within the 3.5 to 3.75 percent range...
Reducing the Fed’s role in the financial system would be a step in the right direction.
Both hawks and doves cite major rules to justify their stance. But the division inside the Fed isn’t dysfunction — it’s a sign of officials taking both mandates seriously.
