Jeffrey M. Lacker, CEE board member and president of the Federal Reserve Bank of Richmond, is featured in today’s New York Times. He doesn’t hide his opinion that the Fed is “limited” in its power to stimulate the economy, and “that just throwing money at the economy is unlikely to solve the problems that are keeping a 55-year-old furniture worker from finding a good competitive job.”
Gary H. Stern, former president Federal Reserve Bank of Minneapolis and also a current member of CEE’s board, is also quoted in the story.
“If you have a forceful and compelling rationale, I think that is constructive internally and externally,” Stern said. “I think the Fed obviously has been in my opinion dealt a difficult hand. To some extent the waters are uncharted. It would be in a way remarkable if you had unanimity under these circumstances and I think Jeff’s concerns about what the Fed can accomplish in this environment and what the risks on the inflation side may be, I think that those points need to be taken seriously.”
You can read the full article here.