This article is a statement given by Dennis P. Lockhart, the President and CEO of the Federal Reserve Bank of Atlanta. It gives his opinion on the current state of the economy, how we got here, and what we might expect in 2010. I think it gives a good overview of the present situation.
He also addresses the issue of keeping the Fed's monetary policy separate from the government "audits" which may begin to try to directly influence new monetary policy.
The Economy in 2010 and Preserving the Role of an Independent Fed
~Cassie
This article is especially interesting for the points Lockhart makes about keeping the central bank from being politicized. He warns that hasty reforms made now out of anger that would diminish the autonomy of the central bank could jeopardize price stability in the future.
ReplyDeleteAnother interesting comment Lockhart makes is that while many are complaining that they cannot get credit, banks are saying that there just are not many people who are qualified for loans. Banks have become more stringent in their lending practices after the subprime mortgage fall out. However, it seems that the general population has yet to accept these changes. In order for the country to avoid a another financial crisis in the future, the discrepancy between what bankers think "qualified" means and what people trying to obtain loans think it means must be closed.