Economics

The New York Fed Has a Black Swan Hunter

  • Job of McConnell’s little-known unit is to query everything
  • She sees danger in booms that leave policy makers complacent

The Federal Reserve Bank of New York headquarters.

Photographer: Daniel Acker/Bloomberg

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Margaret McConnell often tells Federal Reserve officials that they should be a lot more confused than they let on. That’s her job.

She’s head of the Applied Critical Thinking unit, a little-known enclave of the New York Fed with a big mandate: to poke holes in the most basic assumptions that central bankers make -- which can lead to big policy mistakes when they’re wrong.