Article – Mickey D Levy

Levy Sees Trump Nominee Miran Pushing for Radical Changes in Governance of Fed

Here's a Podcast I did with Kathleen Hays on her Podcast Central Bank Central. We dig into some issues that will emerge when the Senate Banking Committee holds confirmation hearings on Stephen Miran, President Trump's nominee to be a Federal Reserve Governor. While financial markets are focusing on whether Miran's favoring lower rates may tilt the Fed toward monetary easing, far more important is Miran's dramatic proposals to reform the Federal Reserve's governance that could materially change its monetary policy deliberations as well as bank supervision and regulation.

by admin_mickey

What the Federal Reserve Can Do to Help Itself

Here's a new Wall Street Journal commentary piece by By Charles I. Plosser and Mickey D. Levy: President Trump’s threat to nominate a new Federal Reserve chairman who will lower interest rates is misguided. History suggests that the economy and financial markets perform best when the Fed prioritizes price stability, and performance suffers when other goals take precedence. A central bank operating independently generates the best outcomes.

by admin_mickey

Trump’s Tariffs Capture a Plethora of Historic Mistakes

Here's a presentation on tariffs I made with my colleague Michael Bordo at a Hoover Institution Economic Policy Workshop. Mike describes how Trump's tariffs policy ignores the important lessons of history that tariffs are costly mistakes. In the second half of the presentation, I describe the likely adverse impacts of tariffs on the economy, financial markets and the Fed, with a focus on the potential high costs of a loss of U.S. government credibility and reliability. I conclude with a scenario analysis of Trump's tariff policies and speculate on probable outcomes.

by admin_mickey