Narayana Kocherlakota: The Fed Should Prepare for the Unexpected: "The staff paper downplayed and Powell ignored what I see as the most important risk...

...that the U.S. economy could face a recession in the next couple years. As then-chair Janet Yellen’s speech at Jackson Hole two years ago revealed, the Fed lacks tools to deal with such a contingency. The best way to prepare is to ensure that the economy is as strong as possible when the downturn hits. And that requires keeping interest rates lower than the Fed is currently planning to do...


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