Event video: AEI: Is the Federal Reserve Behind the Curve?
Event Summary
On October 8, AEI’s Desmond Lachman hosted Donald Kohn of the Brookings Institution, Nathan Sheets of Citigroup, William White of the C. D. Howe Institute, and Alex J. Pollock of the Mises Institute to discuss whether the Federal Reserve was behind the curve in cutting interest rates to support the economy.
The panelists generally agreed that while the Fed has had considerable success in regaining inflation control without inducing a recession, the Fed should be more forward-looking in making its policy decisions. They agreed that the Fed’s task is complicated by a high degree of uncertainty as to future shocks. These included the risk that the Middle Eastern conflict could cause a spike in oil prices and that the commercial real estate sector’s slump could adversely affect regional banks, as well as an unsustainable public debt situation, an increasing tide of protectionism, and the collapse of China’s real-estate market.
Each panelist commented on whether the Federal Reserve’s recent decision to cut interest rates was consistent with meeting its 2 percent inflation target and avoiding an economic recession. They agreed that while signs were encouraging, it was too early make a final judgment. The event concluded with an audience Q&A.
—Jack Rowing
Event Description
Following years of ultra-easy monetary policy, the Federal Reserve has over the past two years pursued a tight monetary policy to regain control over inflation. As inflation shows signs of easing, the debate about the pace of lowering interest rates has intensified.
This event will discuss whether the Fed has successfully achieved a soft economic landing and how Fed policy has affected financial stability.
Submit questions to Jack.Rowing@aei.org or on Twitter with #AskAEIEcon.
Event Materials
Agenda
2:00 p.m.
Opening Remarks:
Desmond Lachman, Senior Fellow, American Enterprise Institute
2:05 p.m.
Panel Discussion
Panelists:
Donald Kohn, Robert V. Roosa Chair in International Economics, Brookings Institution
Desmond Lachman, Senior Fellow, American Enterprise Institute
Nathan Sheets, Global Chief Economist, Citigroup
William White, Senior Fellow, C. D. Howe Institute
Moderator:
Alex J. Pollock, Senior Fellow, Mises Institute
3:30 p.m.
Q&A
4:00 p.m.
Adjournment