The Fed Is in an Epic Battle With Itself
One side wants to help the economy grow faster. The other wants to make the economy more stable.
Janet Yellen and the Fed will have to choose.
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
Two Federal Reserve announcements less than a week apart, in contrast to the Federal Open Market Committee’s decision earlier this month, are likely to show that the agency's own goals are in conflict.
The committee setting monetary policy remains accommodative, with readily available credit to support a still-recovering economy; the regulatory arm of the Fed has a different agenda and is working to build a more stable system that incidentally makes credit more expensive and less available.