Federal Reserve Chairman Ben S. Bernanke and his colleagues are suffering through their own form of cognitive dissonance: revealing new concerns about the economy’s long-term prospects even as they forecast faster growth in 2014.
When James Tobin joined President John F. Kennedy’s administration in 1961, the U.S. economy was struggling to recover from its third recession in seven years. As a member of Kennedy’s Council of Economic Advisers, the Yale University professor put his theoretical research on asset markets to work in fashioning a novel strategy -- nicknamed Operation Twist -- to reduce long-term interest rates.
The U.S. can be an engine for global growth this year and unemployment in the world’s largest economy will go back to its “natural” rate, said Edmund Phelps, the Nobel-prize winning economist and Columbia University professor.
Edmund Phelps, a Nobel Prize-winning economist and professor at Columbia University, says "the Federal Reserve Bank averted a serious mistake" at the last minute by implementing a second round of quantitative easing. Phelps speaks with Bloomberg's Sara Eisen and Michael McKee on "Bloomberg On the Economy."