Instead of another Sarah Bloom Raskin, Biden should nominate an apolitical Fed staffer.
Narayana KocherlakotaBloomberg Opinion Columnist
Narayana Kocherlakota is a Bloomberg Opinion columnist. He is a professor of economics at the University of Rochester and was president of the Federal Reserve Bank of Minneapolis from 2009 to 2015.
It’s doing exactly the opposite of what’s needed to get prices under control.
By failing to confirm key nominees, legislators are leaving the central bank poorly prepared for a momentous policy-making meeting.
Would they be willing to destroy jobs to keep inflation under control?
The central bank’s policy stance is actually much more dovish than it was a year ago. This doesn’t bode well for the economy.
The inflationary experience of the 1970s had its roots in the previous decade.
The central bank needs to be independent, effective and more diverse.
If so, look out for a 1970s-style inflationary spiral.
Forward guidance will work best if it targets a 4% jobless rate.
Biden’s third mandate would benefit all Americans.
Research methods are biased against finding bias.
It needs policy makers with more diverse backgrounds.
Black candidates face higher hurdles to get the top jobs.
Falling short of its mandate means letting America down.
These measures can work no matter what your ideology.
The coronavirus dilemma isn’t about lives versus the economy.
The central bank needs to fight unemployment more aggressively.
Policy makers should be planning for a worst-case scenario.
To fight a deepening recession, it should take U.S. interest rates below zero for the first time ever.
