Furor over the Fed: A President’s Tweets and Central Bank Independence

2021 ◽  
Author(s):  
Antoine Camous ◽  
Dmitry Matveev
Keyword(s):  
Monetary Policy ◽  
Financial Market ◽  
Federal Reserve ◽  
Policy Decisions ◽  
Federal Funds ◽  
Jel Codes ◽  
Federal Reserve Bank ◽  
Market Participants ◽  
Reserve Bank ◽  
Monetary And Fiscal Policy

Abstract We illustrate how financial market data are informative about the interactions between monetary and fiscal policy. Federal funds futures are private contracts that reflect investor’s expectations about future monetary policy decisions. By relating price movements of these contracts with President Trump’s tweets on monetary policy, we explore how financial market participants have perceived attempts by the President to influence monetary policy decisions. Our results indicate that market participants expected the Federal Reserve Bank to adjust monetary policy in the direction suggested by President Trump. (JEL codes: E44, E52, and E58)

scholarly journals Credit Market Frictions, Business Cycles, and Monetary Policy: The Research Contributions of Charles Carlstrom and Timothy Fuerst

2020 ◽  
pp. 1-5
Author(s):  
Todd E. Clark ◽  
Matthias Paustian ◽  
Eric Sims
Keyword(s):  
Monetary Policy ◽  
Business Cycles ◽  
Financial Market ◽  
Federal Reserve ◽  
Optimal Monetary Policy ◽  
Macroeconomic Models ◽  
Federal Reserve Bank ◽  
Reserve Bank ◽  
Credit Market Frictions ◽  
Financial Market Imperfections

Charles Carlstrom and Timothy Fuerst were prolific and prominent research economists who, until their untimely deaths a few years ago, were long-associated with the Federal Reserve Bank of Cleveland. Their myriad contributions include the incorporation of financial market imperfections into macroeconomic models and the study of optimal monetary policy. We provide an overview of their work and summarize a few key themes from a research conference held in their honor.

scholarly journals The Federal Reserve Banks New Monetary Policy Tool

2012 ◽  
Vol 10 (9) ◽  
pp. 533
Author(s):  
David Gordon
Keyword(s):  
Monetary Policy ◽  
Federal Reserve ◽  
Vital Role ◽  
Open Market ◽  
Federal Reserve Bank ◽  
Us Economy ◽  
Policy Tool ◽  
Reserve Bank ◽  
The Us ◽  
Demand Deposit

The Federal Reserve Bank (FED) plays a vital role in the US economy. The roles and functions of the Fed are discussed here. This paper also offers an explanation of the traditional tools the Fed uses to conduct monetary policy. Open market operations are explained. The important role of the discount rate is discussed. The legally required reserve ratios are also explored. This author believes that the Fed has recently created a new tool. This tool is the payment of interest on demand deposit accounts at the Fed. This new tool is explained and its ramifications explored. The functions of monetary policy are also expanded upon in this paper.

US financial deregulation bill will snag in Senate

2017 ◽  
Keyword(s):  
Monetary Policy ◽  
Federal Reserve ◽  
Financial Protection ◽  
Subprime Mortgages ◽  
Content Type ◽  
Federal Reserve Bank ◽  
Financial Deregulation ◽  
Reserve Bank ◽  
The Face ◽  
Trump Administration

Significance Although the most recent failure of the Republican push to repeal Obamacare in the Senate has had a higher profile, the Financial Choice Act faces stronger odds against passage; it would substantially deregulate the financial sector and pare back the independence of the Federal Reserve Bank to set monetary policy. The act also would dilute the power of the Consumer Financial Protection Bureau (CFPB), a regulator created in response to the mis-selling of subprime mortgages that contributed the 2007-09 recession. Impacts Democrats will contrast the White House’s populist claims with the retrenchment of consumer protections. Wary Senate Republicans are unlikely to follow through on Trump’s calls to eliminate the legislative filibuster. The Trump administration will use administrative obstruction and non-enforcement in the face of legislative inertia.

ANTI-CRISIS STATE INTERVENTION AND CREATED IN MEDIA IMAGES OF GLOBAL FINANCIAL CRISIS

2018 ◽  
Vol 8 (2) ◽  
pp. 177-179
Author(s):  
Dariusz Prokopowicz
Keyword(s):  
Monetary Policy ◽  
Financial Crisis ◽  
Federal Reserve ◽  
Commercial Banks ◽  
Global Financial Crisis ◽  
Financial System ◽  
State Intervention ◽  
Federal Reserve Bank ◽  
Reserve Bank ◽  
The Global Financial Crisis

The global financial crisis in 2008 was the reason for increasing the scale of interventionist economic policies in developed countries. The main instrument of this policy was the significant development of a mild monetary policy and interventionist measures aimed at forcing the restructuring processes of heavily indebted enterprises and stopping the decline in lending by commercial banks. As part of the pro-development activities of the state intervention, the Federal Reserve Bank applied a mild monetary policy of low interest rates and a program for activating lending and maintaining liquidity in the financial system by financing the purchase from commercial banks of the most endangered assets. A few years later, the European Central Bank applied the same activities of activation monetary policy. The functioning of the financial system will not be fully corrected as long as there will be a message in the media encouraging the banks that the global financial crisis is primarily attributable to the Federal Reserve Bank in the USA. In many para-documentary films, which, as a para-scientific explanation and education of citizens, promote the philosophy of combining deregulation of financial markets with the development of a free market, and attempts to regulate markets are trying to implement the principles of real socialism, a system quite different from that considered an ultramarine US economy.

The Politics of Monetary Policy: A Critical Review

1994 ◽  
Vol 14 (1) ◽  
pp. 57-85 ◽  
Author(s):  
John T. Woolley
Keyword(s):  
United States ◽  
Monetary Policy ◽  
Central Bank ◽  
Federal Reserve ◽  
Critical Review ◽  
The United States ◽  
Central Banks ◽  
Federal Reserve Bank ◽  
Reserve Bank ◽  
Banking Institution

ABSTRACTThe Federal Reserve Bank of the United States is a pre-eminent banking institution, and an institution that has been subject to scrutiny from a wide variety of scholarly perspectives. The object of this article is to review prominent works dealing with the politics of the Federal Reserve, particularly its relations with other institutions and their effects on monetary policy. The review shows that the formal legal independence of a central bank such as the Fed does not mark the end of monetary politics, and its record suggests a greater measure of modesty and caution on the part of enthusiasts for independent central banks.

Sign in / Sign up

Export Citation Format

Share Document