This Mary MacGregor ballad released in 1976 notes how a woman is torn between two men she loves and it is “breakin’ all the rules.” This is the situation Federal Reserve Chairman Jerome Powell and the FOMC finds itself: The love of its dual mandate and its torrid affair with the beloved Phillips Curve. Now it appears that the FED leadership is abandoning its affair with Phillips Curve while it grows more attached to its other love, Mario Draghi and the European Central Bank.
Posts Tagged ‘New York Fed’
Notes From Underground: William Dudley Starts Goodbye With a “Dud” Speech
November 6, 2017As reported over the weekend, New York Fed President William Dudley is turning in his keys to the printing press and leaving the Fed in mid-2018 to spend more time with his family (Goldman Sachs). In a speech delivered to the Economic Club of New York, the reigning king of the New York Fed praised the central bank for its effort to prevent a collapse of the global financial system. He laid blame for the crisis on all the familiar miscreants but mostly stressed that “the safeguards put in place in response to the crisis are fully appreciated and respected.” President Dudley maintains that the global financial crisis was a result of lacking the tools to regulate the entire financial system and sums up his analysis: “We had woefully inadequate regulatory regime in place,and while it is much better now, there is still work to do.”
Notes From Underground: The Fed and John Lennon … HOW?
April 6, 2015In the song “HOW” from John Lennon’s Imagine, he asks:
How Can We Go Forward When We Don’t Know Which Way we ‘re facing?How can we go forward when we don’t know which way to turn?How can we go forward into something we’re not sure of?Oh no, oh no.
Notes From Underground: Aussie checks; Brazil raises; and Brian Sack speech reveals a lot about the DUDLEY CALL
October 5, 2010Monday night the Australian Central Bank decided to hold the lending rate at 4.5 percent rather than raise to 4.75 percent as 80 percent of economists predicted. It appears that the RBA is very concerned about the global growth story and the recent strength in the AUSSIE DOLLAR. As expected, the Aussie currency sold off sharply as the market was disappointed that the bank is on hold for the moment. We were in the camp that the Aussies would check because of the recent Aussie dollar strength but something else bothered us.