Unsustainable fiscal policy in the US could lead to the subjugation of the Fed's inflation target, according to a paper presented at a Monetary Policy Forum in New York on February 22.
The research drew rebuttals from a Federal Reserve governor, Jerome Powell and the president of the Federal Reserve Bank of Boston, Eric Rosengren, who concluded that it fell short on a number of fronts.
The paper* says unsustainable fiscal policy – in the extreme – will lead to a situation where the country's cen
- James Bullard on 2% rates, tariffs and Fed leadership
- Turkish central bank raises overnight rates in bid to stop lira’s fall
- Next financial crisis “will be brewing” in shadow banking – Bullard
- Policies must change to stop emerging markets crisis, analysts say
- Podcast: David Hendry and John Muellbauer on empirical macro