Economics
Fed’s Waller Sees ‘Soft Landing’ Plausible in Pushback to Summers
- Waller co-authors paper in response to Summers, Blanchard
- Fed sees cooler job market necessary condition to curb prices
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Federal Reserve Governor Christopher Waller pushed back against economists Olivier Blanchard and Lawrence Summers, who said the central bank’s assertion that it can cool off labor demand without much impact on the unemployment rate “flies in the face” of evidence.
Waller and his Fed research colleague Andrew Figura criticized the approach of the paper by Summers, Blanchard and Alex Domash that argued the central bank would be unlikely to achieve its goal without inflicting a “painful” spike in unemployment.