Reuters — Fed plans major review of how it pursues inflation, employment goals

The Federal Reserve will conduct an extensive review next year of how it tries to guide the U.S. economy, the U.S. central bank said on Thursday.

“Now is a good time to take stock of how we formulate, conduct, and communicate monetary policy,” said Federal Reserve Chairman Jerome Powell, noting that the Fed was close to meeting its goals of maximum employment and a 2 percent inflation rate. 

In a statement, the Fed said it would reach out to a “broad range” of stakeholders and that it planned to host a research conference in June to support the review. The research conference will be held at the Federal Reserve Bank of Chicago.

Admission that current policy is not working?

Reuters
Fed plans major review of how it pursues inflation, employment goals

Brad DeLong — Antonio Fatas: A 2016 Recession Would Be Different

If a recession ends up happening, helicopter money will likely become a policy option.

WCEG — The Equitablog
Antonio Fatas: A 2016 Recession Would Be Different
Brad DeLong

Zachary Karabell — Janet Yellen's Quiet Revolution

Trump says she's a political stooge. Actually, she's reinventing our understanding of economics.

Good post on Janet Yellen.

She's a Keynesian that takes both uncertainty and employment seriously.

Politico
Janet Yellen's Quiet Revolution
Zachary Karabell | head of global strategy at Envestnet, author of The Leading Indicators: A Short History of the Numbers That Rule Our World, and a contributing editor at Politico Magazine

ht Barry Ritholz at Bloomberg View