Alexander W. Salter
Chairman Powell’s Curious Case for Abundant Reserves
Last week, Fed Chairman Jerome Powell delivered his semiannual monetary policy report to Congress. Fed watchers will find lots to chew on, but the really interesting material comes in his […]
Central Bank Independence: More Heat than Light
President Donald Trump’s on-again, off-again feud with Federal Reserve Chairman Jerome Powell has market observers apprehensive. Economists, policymakers, businessmen, and commentators are worried about growing threats to the Fed’s independence. […]
What is Central Bank Independence?
The explainer defines central bank independence, describes its theoretical desirability, and reviews classic and contemporary studies on how central bank independence affects key macroeconomic variables.
Two Cheers (and a Warning) for May’s Inflation Slowdown
Disinflation is no longer a blip, but a trend. The Bureau of Labor Statistics reported that the Consumer Price Index (CPI) increased 0.1 percent in May, down from 0.2 percent […]
April’s Prices Rose, But Inflation Cooled Overall
After slight deflation in March, prices rose again in April. The Bureau of Labor Statistics (BLS) reports that the Consumer Price Index (CPI) increased 0.2 percent last month. Over the […]
Consumer Prices Fall in March
After a quarter-long inflationary resurgence, it looks like prices are now falling. The Bureau of Labor Statistics reported that the Consumer Price Index (CPI) declined 0.1 percent in March. Prices […]
What a Trumped-up Fed Means for the Global Economy
President Trump is bringing federal agencies to heel. Is the Federal Reserve next? Our nation’s central bank jealously guards its independence from politics. Given its inflation-fighting and financial stability-preserving mandates, […]
Price Growth Slows in February
After disappointing readings in November, December, and January, inflation appears to be slowing once again. Could this mark the return to sustainably low price pressures? The Bureau of Labor Statistics […]
The Fed’s Triple Mandate Problem: It’s Time to End the Confusion
What is the Federal Reserve’s job? The standard answer is to maintain full employment and stable prices. This is what economists and commentators mean when they talk about the “dual […]
Against Central Bank Independence
President Trump’s return to the White House has sparked a resurgence of interest in central bank independence. Federal Reserve Governor Michael Barr said he would step down from his Vice […]
