Rogoff Says Markets Will Thwart Any Political Pressure on Fed
- Harvard economist cites fiscal policy impact in his calculus
- Rogoff says there is some ‘reversion to the mean’ under way
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Harvard University economics professor Kenneth Rogoff said that financial markets would effectively impose restraint on any move by a US president to force the Federal Reserve into easing monetary policy.
“If you take away Fed independence, investors are going to get jittery, inflation expectations are going to go up, the dollar’s going to tank,” Rogoff said on Bloomberg Television’s Wall Street Week with David Westin. “For better or for worse, maybe, I think markets will throw a pretty cold bucket of water on the president if he tries to do that.”