Jekyll Island Forum Prompts Fed to Consider History
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The coastal Georgia island where a secret 1910 meeting produced a blueprint for the Federal Reserve led central bankers 100 years later to consider the lessons of history as they move into new monetary territory.
Philadelphia Fed President Charles Plosser, citing continuing debate about the Fed’s role in the Depression, said that “humility is in order” for policy makers trying to make the right decisions today. Former Minneapolis Fed President Gary Stern said the 1990-91 recession shows the current recovery may take “a while” and the housing bubble last decade, fueled by low interest rates, suggests officials shouldn’t wait too long to tighten credit.