I disagree with Jeff here: the Federal Reserve has not been doing a good job since 2010. Its central task as of 2010 was to (a) get the U.S. economy rapidly back to full employment at (b) a configuration of economic variables that would give it a short-term safe nominal interest rate of 5% or more so it would have room to properly fight the next recession whenever it should come. You could argue that the rest of the government make it impossible for the Fed to do a good job. But you cannot argue that the Fed should be satisfied with the job it has done since 2010: Jeffrey Frankel: The Depth of the Next US Recession: "Whatever the immediate trigger of the next US recession, the consequences are likely to be severe.... Pro-cyclical fiscal, macro-prudential, and even monetary policies... [leave] authorities are in a weak position to manage the next inevitable shock...

...While it is hard to get counter-cyclical timing exactly right, that is no excuse for pro-cyclical policy, an approach that puts the US in a weak position to manage the next inevitable shock.... America’s deficit is being blown up on both the revenue and expenditure sides.... The Trump administration’s embrace of financial deregulation is also pro-cyclical and intensifies market swings.... Now is the right point in the cycle to raise banks’ capital requirements as called for under Dodd-Frank. The cushion would minimize the risk of a future banking crisis.... When it comes to monetary policy, the US Federal Reserve has been doing a good job; but its independence is increasingly under attack from Republican politicians. If this assault succeeds, counter-cyclical monetary policy would be impaired...


#shouldread

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