{"id":48204,"date":"2019-09-03T09:20:50","date_gmt":"2019-09-03T14:20:50","guid":{"rendered":"https:\/\/olduvai.ca\/?p=48204"},"modified":"2019-09-03T09:20:58","modified_gmt":"2019-09-03T14:20:58","slug":"weekly-commentary-dudley-sticks-his-neck-out","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=48204","title":{"rendered":"Weekly Commentary: Dudley Sticks His Neck Out"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"http:\/\/creditbubblebulletin.blogspot.com\/2019\/08\/weekly-commentary-dudley-sticks-his.html\">Weekly Commentary: Dudley Sticks His Neck Out<\/a><\/h3>\n\n\n\n<p>What a fascinating environment; each week bringing something extraordinary. Yet there is this dreadful feeling that things are advancing toward some type of cataclysm.<\/p>\n\n\n\n<p>\u201cU.S. President Donald Trump\u2019s trade war with China keeps undermining the confidence of businesses and consumers, worsening the economic outlook. This manufactured disaster-in-the-making presents the Federal Reserve with a dilemma: Should it mitigate the damage by providing offsetting stimulus, or refuse to play along? If the ultimate goal is a healthy economy, the Fed should seriously consider the latter approach\u2026 There\u2019s even an argument that the election itself falls within the Fed\u2019s purview. After all, Trump\u2019s reelection arguably presents a threat to the U.S. and global economy, to the Fed\u2019s independence and its ability to achieve its employment and inflation objectives. If the goal of monetary policy is to achieve the best long-term economic outcome, then Fed officials should consider how their decisions will affect the political outcome in 2020.\u201d Bill Dudley, Bloomberg op-ed, August 27, 2019<\/p>\n\n\n\n<p>The former president of the Federal Reserve Bank of New York\u2019s piece galvanized an overwhelmingly negative response. Virtually everyone agrees it would be an outrage for the Fed to take such a plunge into the political maelstrom.&nbsp;&nbsp;<\/p>\n\n\n\n<p>A Federal Reserve spokeswoman responded: \u201cThe Federal Reserve&#8217;s policy decisions are guided solely by its congressional mandate to maintain price stability and maximum employment. Political considerations play absolutely no role.\u201d<\/p>\n\n\n\n<p>Former Treasury official Larry Summers weighed in (from CNBC interview): \u201cThe Fed\u2019s job is to stay out of politics. The Fed\u2019s job is to respond to the best assessment they can make of economic conditions and adjust the economy \u2013 interest rates &#8211; appropriately\u2026 <\/p>\n\n\n\n<p>&nbsp;\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Weekly Commentary: Dudley Sticks His Neck Out What a fascinating environment; each week bringing something extraordinary. Yet there is this dreadful feeling that things are advancing toward some type of cataclysm. \u201cU.S. President Donald Trump\u2019s trade war with China keeps undermining the confidence of businesses and consumers, worsening the economic outlook. This manufactured disaster-in-the-making presents [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[8469,130,16861,827,3650],"class_list":["post-48204","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bill-dudley","tag-china","tag-doug-noland","tag-united-states","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48204","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=48204"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48204\/revisions"}],"predecessor-version":[{"id":48205,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48204\/revisions\/48205"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=48204"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=48204"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=48204"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}