Trump more hostile to Canada than any other president: Frum
David Frum, staff writer at The Atlantic magazine, talks with Financial Post’s Larysa Harapyn about how to filter the fact from the fiction with Trump’s…
Thought Leader: David Frum
The Man Who Said No to Easy Money
Thought Leader: Thomas Hoenig
February 14, 2011
(original source Time)
Late in January, the high priests and priestesses of the U.S. economy gathered inside their Washington sanctum for the regularly scheduled ritual known as the Federal Open Market Committee (FOMC). This is the group that decides the value of money, measured by interest rates, which it controls by easing or tightening the money supply. Of course, there are other forces that influence the value of money—a great global whirlwind of forces—but most don’t hold orderly meetings in a grand conference room on Constitution Avenue.
The FOMC’s mission is to steer a course between the shoals of high unemployment and high inflation, putting enough dough into circulation to keep the economy well fed and growing—but not so much that money begins to plummet in value. The priesthood meets eight times per year, reporting its decisions in oracular statements of Olympian voice. This year, when the committee spoke, Fed watchers noted something striking: for the first time since z00% the members were unanimous. All supported the chosen policy of adding $600 billion to the banking system by purchasing that amount of Treasury bills from big banks—a strategy known as quantitative easing.
Click here to read more
Relevant and recent posts
Joseph Grogan: Medicare should cover Wegovy — but not negotiate its price
Price controls are a surefire way to crush innovation. President Biden took a groundbreaking step in proposing to cover GLP-1 obesity medications under Medicare and Medicaid in…
Thought Leader: Joseph Grogan
Anders Fogh Rasmussen: An alliance of democracies with India at its core
Europe and India need a more practical relationship; together, Europe, India and the United States can be unstoppable. By: Anders Fogh Rasmussen In the minutes…
Thought Leader: Anders Fogh Rasmussen
More with this speaker
FDIC’s Hoenig Keeps Wall Street on Edge
Thought Leader: Thomas Hoenig
The Fed’s Monetary Dissident
Thought Leader: Thomas Hoenig