The Federal Reserve can’t reduce unemployment and easing further won’t be effective, Carnegie Mellon University’s Allan Meltzer said today at the Bloomberg Hedge Funds Summit. Former Fed Governor Laurence Meyer, speaking at the same event, said the central bank should do more.
The Federal Reserve is wrong to focus on low measures of consumer-price inflation because such indexes are distorted by the method used to calculate rents, said Allan Meltzer , a historian of the central bank.
The Federal Reserve’s efforts to boost the economy by expanding its balance sheet probably won’t succeed while increasing the chances of higher long-term inflation, said Allan Meltzer , a historian of the central bank.
Federal Reserve Bank of Kansas City President Esther George dissented today in her first vote on the central bank’s policy committee because she was concerned that record stimulus may fuel the risk of financial instability and a surge in inflation.
Fed historian Allan Meltzer, a professor at Carnegie Mellon University, and James O’Sullivan, chief economist for MF Global Inc. in New York, said dissents by three Federal Reserve policy makers at today’s meeting in Washington highlight divisions among policy makers. They spoke after the majority on the Federal Open Market Committee voted to keep the benchmark interest rate at a record low at least through mid-2013.
If only the Volcker rule had been in place. If only the Dodd-Frank law had an additional 1,000 pages of rules. If only there had been more regulators at JPMorgan Chase & Co. If only the regulators had done a better job.