DOCSLIB.ORG

FOMC Meeting Minutes

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
FOMC Meeting Minutes A meeting of the Federal Open Market Committee was held in the offices of the Board of Governors of the Federal Reserve System in Wash ington on Thursday, June 11, 1953, at 10:30 a.m. PRESENT: Mr. Martin, Chairman Mr. Sproul, Vice Chairman Mr. Erickson Mr. Evans Mr. Fulton Mr. Johns Mr. Mills Mr. Powell Mr. Robertson Mr. Riefler, Secretary Mr. Thurston, Assistant Secretary Mr. Vest, General Counsel Mr. Thomas, Economist Messrs. Abbott, Hostetler, Peterson, Roelse, Parker B. Willis, and Ralph A. Young, Associate Economists Mr. Rouse, Manager, System Open Market Account Mr. Carpenter, Secretary, Board of Governors Mr. Sherman, Assistant Secretary, Board of Governors Mr. Youngdahl, Assistant Director, Division of Research and Statistics, Board of Governors Mr. R, F. Leach, Chief, Government Finance Section, Division of Research and Statistics, Board of Governors Mr. Arthur Willis, Assistant Secretary, Federal Reserve Bank of New York Messrs. Gilbert, Leedy, Williams, and C. S. Young, alternate members of the Federal Open Market Committee Messrs. Bryan, Earhart, and Hugh Leach, Presidents of the Federal Reserve Banks of Atlanta, San Fran cisco, and Richmond, respectively Messrs. Leonard, Director, Division of Bank Opera tions, Board of Governors, and Deming, First Vice President, Federal Reserve Bank of St. Louis 6/11/53 -2 Upon motion duly made and seconded, and by unanimous vote, the minutes of the meeting of the Federal Open Market Committee held on March 4-5, 1953 were approved, The Secretary stated that advices of the election by the Boards of Directors of the Federal Reserve Banks of Cleveland and Chicago of W. D. Fulton as a member of the Federal Open Market Committee for the remainder of the year ending February 28, 1954 had been received and that Mr. Fulton had executed the customary oath of office. The Secretary also stated that Mr. Fulton had proposed that L. Merle Hostetler, of the Federal Reserve Bank of Cleveland, be elected an associate economist of the Committee to succeed Donald S. Thompson of that Bank; and that Mr. Erickson had proposed that Parker B. Willis, of the Federal Reserve Bank of Boston, be elected an associate economist of the Committee to succeed Arthur A. Bright, Jr. The election of Mr. Fulton as a member of the Federal Open Market Committee for the remainder of the year ending February 28, 1954 was noted, and, upon motion duly made and seconded and by unanimous vote, the election of Messrs. Hostetler and Willis to serve as associate economists of the Federal Open Market Committee until the election of their suc cessors at the first meeting of the Committee after February 28, 1954 was approved. These actions were noted and approved with the understanding that in the event of the discontinuance of their official connections with the Federal Reserve Banks of Cleve land or Boston, as the case might be, Messrs. Fulton, Hostetler, or Willis would cease to have any official connection with the Federal Open Market Committee. In taking this action, it was also understood that Mr. Fulton was selected as an alternate member 6/11/53 -3 of the executive committee, and that the order in which the alternate members of the executive com mittee would serve for Messrs. Sproul and Erickson would be Mr. Johns, Mr. Powell, and Mr. Fulton. Upon motion duly made and seconded, and by unanimous vote, the actions of the executive com mittee of the Federal Open Market Committee as set forth in the minutes of the meetings of the execu tive committee held on March 5, March 24, April 8, April 2 4, May 6, May 13, and May 26, 1953 were approved, ratified, and confirmed. Before this meeting there had been sent to the members of the Committee a copy of a report prepared at the Federal Reserve Bank of New York covering operations in the System open market account from March 4 to June 5, 1953, inclusive. At this meeting, Mr. Rouse presented a sup plementary report covering commitments executed from June 6 to June 10, 1953, inclusive, and commented briefly on the reports, copies of which have been placed in the files of the Federal Open Market Committee. Chairman Martin referred to operations in the System account dur ing the past week, particularly to developments on Monday and Tuesday, June 1 and 2, 1953, when there was serious unsettlement in the Government securities market which brought prices of longer term Government securi ties to record lows for outstanding issues, and which caused the new issue of 2-5/8 per cent certificates of indebtedness to settle below par. He said that on June 2 the System account handled purchases of $81.5 millions of bills with dispatch and efficiency that seemed to bring commendation 6/11/53 -4 from everyone. However, the question had been raised as to whether, in view of the position taken by the executive committee at its meeting on May 6, 1953 at which time it was agreed that there should be injections of reserves into the market to avoid a further tightening, System purchases of bills had been sufficient over the past several weeks. The Chairman then asked Mr. Rouse to give the Committee his rationale of operations for the account during this period. Mr. Rouse stated that he felt the purchases of securities made for the System account had been sufficient although he recognized that in hind sight judgments might differ on this point. He had been surprised that more people did not apply the "multiplier" with respect to the amount of reserve funds that had been put into the market. He felt that it had been fortunate that funds had been available from Government investment accounts last week for purchases of Government bonds, noting that $3.5 million of long-term 2-1/2's were purchased at the opening on Tuesday, June 2, with considerable effectiveness. Mr. Rouse stated that while he knew there was some feeling that purchases for the System account may not have gone far enough, on the other hand it must be noted that the System had increased its holdings of securities by $328.8 million since the last meeting of the full Committee and that in recent weeks the Treasury had put $1100 million of reserves into the market through reductions in its balances with the Reserve Banks and in a special account, and through sales of special 6/11/53 -5 certificates of indebtedness. If reserves were going to do the job, Mr. Rouse felt the reserves had been available. As far as the current market is concerned, Mr. Rouse said that at present the Treasury would have dif ficulty in selling securities in the amount of $1-1/2 billion to meet the prospective deficit in July and August. There is, however, some indica tion that the psychology in the market is improving, Mr. Rouse said, al though fairly sharp movements in Government bond prices may still occur on a single day. Thereupon, upon motion duly made and seconded, and by unanimous vote, the transactions in the Sys tem open market account for the period March 4 to June 10, 1953, inclusive, were approved, ratified, and confirmed. Chairman Martin referred to a draft of proposed revision in the directive of the Federal Open Market Committee prepared pursuant to the understanding at the meeting of the full Committee on March 4-5, 1953, a copy of which had been sent to all members of the full Committee and the executive committee. At the Chairman's request, Mr. Vest commented on the proposal, emphasizing that the drafts prepared by the staff were in tended to change only the form of the directives and were not intended to make any changes of substance in them. Chairman Martin stated that while the drafts of revision had been discussed by the executive committee at its meetings on May 13 and May 26, the committee had no recommendation to make with respect to the matter. 6/11/53 -6 During a brief discussion, he suggested that the full Committee refer the matter to the executive committee with the understanding that the executive committee would appoint two of its members to consider the proposal for revision in directives, and with the further understanding that this special committee would submit its recommendations to the members of both the full Committee and the executive committee. This suggestion was approved unani mously. Reference was then made to a memorandum prepared in the Division of Bank Operations of the Board of Governors under date of May 21, 193 with respect to the allocation of securities in the System open market account, the present formula for which had been adopted effective January 1, 1948. The memorandum had been prepared as a result of the action taken by the full Committee at its meeting on March 4-5. 1953, at which time it was sug gested that the staff study the present basis of allocations in the System open market account with a view to having a discussion of any suggested changes at this meeting. At Chairman Martin's request, Mr. Leonard, Director of the Board's Division of Bank Operations, reviewed the content of the memorandum, dis cussing the present basis of allocation, reasons why there might be a change, and possible bases of allocation. In his comments, Mr. Leonard stated that without making any recommendation the memorandum attempted to present various allocation formulae which might be related to (a) expenses 6/11/53 -7 and dividend requirements as at present, (b) size of the Reserve Banks as measured by various factors, (c) equalizing reserve ratios initially with freedom of movement thereafter within some pre-determined range, (d) tending to equalize ratios of surpluses to capital, or (e) district, financial, and other economic data.
Load more

Recommended publications
  • TT Mboweni: Inflation, Growth and Employment Opportunities
    TT Mboweni: Inflation, growth and employment opportunities Lecture by Mr TT Mboweni, Governor of the South African Reserve Bank, at the Department of Economics, University of Stellenbosch, Stellenbosch, 6 March 2003. * * * 1. Introduction Members of the Portfolio and Select Committees on Finance, Deputy vice-chancellor, Professors, Staff, Students, Ladies and gentlemen It is very pleasant to be on this side of the beautiful Hex River Mountains and to speak to you on a number of issues right at the core of central banking. The accusation is often heard that central bankers have narrowed the world down to inflation, and do not have an open mind on any other matters. Not true! The way in which these matters come together - the principles behind their interaction - will be central to my talk to you today. 2. The magnitude of the challenges facing our economy Starting with a longer-term picture of inflation, it is a well-known fact that the double-digit inflation which reigned from 1974 to 1992 left considerable scars on our economy. Its redistributive impact was nasty, with the buying power of the most vulnerable groups in society, the poor and the elderly, in particular being undermined. The plight of a pensioner who retired twenty years ago using interest on a fixed deposit to provide for himself or herself is illustrated by the cost of a basket of consumer items which cost R100 in early 1983. The cost of that basket shot up to R380 in early 1993, and currently amounts to R815. Although inflation has receded to single-digit levels and has averaged around 7,8 per cent per annum over the last ten years, this is still enough to very significantly erode the living standard of the most vulnerable groups in our society over time.
    [Show full text]
  • Monetary Policy Assignment #14
    Monetary Policy Assignment #14 https://www.youtube.com/watch?v=1dq7mMort9o&index=10&list=PL8dPuuaLjXtPNZwz5_o_5uirJ8gQXnhEO Monetary Policy and the Federal Reserve: Crash Course Economics #10 https://www.youtube.com/watch?v=HdZnOQp4SmU&index=32&list=PLF2A3693D8481F442 Dr. Mary J. McGlasson Video #32 on Monetary Policy Chapter 16: The Federal Reserve (Fed) System, Monetary Policy, Federal Funds Rate vs. Discount Rate, Money Supply, Bank Reserve Requirements, Money Multiplier, Prime Rate, Open Market Operations, “Easy” Money vs. “Tight” Money Policy, Business Cycles & Policy Lags http://money.cnn.com/2017/11/02/news/economy/trump-jerome-powell-federal-reserve/index.html 2 Types of Monetary Policy Monetary Policy Definitions Money Supply The total amount of money in circulation or in existence in a country. Loose Money Policy A loose monetary policy occurs when the money supply is expanded and is easily accessible to citizens to encourage economic growth. Tight Money Policy When the monetary authorities of a country adopt a policy that decreases money supply and raises interest rates as a means to slow down economic activity. Interest Rate The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan. Q: Who controls Monetary Policy in the USA? A: “the Fed” Tools of Monetary Policy: #1) Adjust Reserve Requirements What would happen if the Federal Reserve increased reserve requirements? When the Federal Reserve raises the reserve ratio, it raises the amount of cash banks are required to hold in reserves and reduces the amount of loans they can give to consumers and businesses.
    [Show full text]
  • Netw Rks Reading Essentials and Study Guide
    NAME ________________________________________ DATE _______________ CLASS _________ Reading Essentials and Study Guide netw rks Chapter 16: Monetary Policy Lesson 2 Monetary Policy ESSENTIAL QUESTION How does the government promote the economic goals of price stability, full employment, and economic growth? Reading HELPDESK Academic Vocabulary explicit openly and clearly expressed Content Vocabulary fractional reserve system system requiring financial institutions to set aside a fraction of their deposits in the form of reserves legal reserves currency and deposits used to meet the reserve requirements reserve requirement formula used to compute the amount of a depository institution’s required reserves member bank reserve (MBR) reserves kept by member banks at the Fed to satisfy reserve requirements excess reserves financial institution’s cash, currency, and reserves not needed for reserve requirements; potential source of new loans monetary policy actions by the Federal Reserve System to expand or contract the money supply to affect the cost and availability of credit interest rate the price of credit to a borrower easy money policy monetary policy resulting in lower interest rates and greater access to credit; associated with an expansion of the money supply tight money policy monetary policy resulting in higher interest rates and restricted access to credit; associated with a contraction of the money supply open market operations monetary policy in the form of U.S. Treasury bills, or notes, or bond sales and purchases by the Fed discount
    [Show full text]
  • Monetary Policy
    Monetary Policy Introduction to Monetary Policy • Reemphasize Chapter 13's points:The Fed's Board of Governors formulates policy, and twelve Federal Reserve Banks implement policy. • The fundamental objective of monetary policy is to aid the economy in achieving full-employment output with stable prices. o To do this, the Fed changes the nation's money supply. o To change money supply, the Fed manipulates size of excess reserves held by banks. • Monetary policy has a very powerful impact on the economy, and the Chairman of the Fed's Board of Governors, Alan Greenspan currently, is sometimes called the second most powerful person in the U.S. Consolidated Balance Sheet of the Federal Reserve Banks • The assets on the Fed's balance sheet contains two major items. o Securities which are federal government bonds purchased by Fed, and o Loans to commercial banks (Note: again commercial banks term is used even though the chapter analysis also applies to other thrift institutions.) • The liability side of the balance sheet contains three major items. o Reserves of banks held as deposits at Federal Reserve Banks, o U.S. Treasury deposits of tax receipts and borrowed funds, and o Federal Reserve Notes outstanding, our paper currency. The Fed has Three Major "Tools" of Monetary Policy • Open-market operations refer to the Fed's buying and selling of government bonds. o Buying securities will increase bank reserves and the money supply (see Figure 15-1). o If the Fed buys directly from banks, then bank reserves go up by the value of the securities sold to the Fed.
    [Show full text]
  • Tactics and Targets of Monetary Policy
    Tactics and Targets of Monetary Policy JAMES S. DUESENBERRY Fashions in economic policy can change as rapidly as fashions in dress. Only five years ago, economists-with the enthusiastic assis­ tance of the press-were hailing the successes of fiscal policy, while monetary policy took a back seat. Most accounts of the economic expansion from 1961 through 1965 gave monetary policy credit for accommodating-i.e., not getting in the way of the expansion generated by fiscal policy-but did not give monetary policy a very active role. Today, a large number of economists are prepared to agree that mOlletary policy plays the dominant role in determining the movements of aggregate demand. It is true, no doubt, that many economists were overly optimistic about our ability to predict the effects of fiscal policy and even more optimistic about the predictability of the Congress. The political failures of fiscal policy in 1966-67 and the weak impact of the su;:tax in 1968-69 are sufficient to account for the current skepticism in regard to fiscal policy. [It is worth noting that all the statistical evidence underlying the income expenditure approach would lead us to expect the occurrence of substantial forecast errors from time to time.] The swing toward monetary policy reflects the fact that swings in the growth in GNP have followed the swings in the growth of money supply to a marked degree. But we should be wary of supposing that we have found a new key to stabilization policy. The fact is that we still have a very inadequate knowledge of how monetary policy works.
    [Show full text]
  • A Post-Crisis Reading of the 'Role of Monetary Policy'
    A Post-Crisis Reading of the ‘Role of Monetary Policy’ Stan Du Plessis ERSA working paper 419 February 2014 Economic Research Southern Africa (ERSA) is a research programme funded by the National Treasury of South Africa. The views expressed are those of the author(s) and do not necessarily represent those of the funder, ERSA or the author’s affiliated institution(s). ERSA shall not be liable to any person for inaccurate information or opinions contained herein. A Post-Crisis Reading of the ‘Role of Monetary Policy’ Stan Du Plessis∗ February 11, 2014 Abstract In 1967 Milton Friedman delivered “The Role of Monetary Policy’ as his presidential address to the American Economic Association (AEA). In its published version — Friedman (1968) — it has become, arguably, the most influential paper in modern monetary economics and was recently included in the AEA’s list of the twenty most influential papers published in the first century of the American Economic Review. But the influence of Friedman’s address is based on an interpretation that seriously distorts the content of his main argument. His emphasis on (i) the inadequacy of interest rate policy and (ii) the primacy of financial stability among the positive goals of monetary policy have been ignored or neglected. While balance sheet policies have become ‘unconventional’ in the modern con- sensus, these policies held a central position in Friedman’s work. I support this argument with a textual analysis of Friedman’s address, read in the light of his preceding scholarship on monetary policy. This reinterpreta- tion is relevant in a world where the balance sheets of central banks have returned to centre stage as has the priority for financial stability.
    [Show full text]
  • An Explanation of Federal Reserve Actions (1933-68)
    An Explanation of Federal Reserve Actions (1933-68) stabilization policies. Interest rates have generally N RECENT YEARS there has been a noticeable been rising when the Federal Reserve called for tight shift in professional opinion with respect to the im- money, and falling when it called for easy money. pact of Federal Reserve actions on national income. Economists who consider that the Federal Reserve More economists now acknowledge that these actions has its primary effect on the economy through changes play a key short-run role in the determination of in monetary aggregates, such as the money stock or total demand. Monetary studies, using United States the monetary base, consider that an accelerating ag- as well as foreign data, have given considerable sup- gregate is a sign of expansionary monetary influences port to this position.’ Parallel with the increased on the economy and a decelerating aggregate is a recognition of Federal Reserve actions as an impor- sign of restrictive monetary influences. On the basis tant determinant of national income has been an of escalation of the controversy over the proper interpre- aggregate measures, Federal Reserve actions have been criticized for not always being consistent with tation of monetary policy. For example, the financial press has at times expressed concern that restrictive stated monetary policy. policy statements are not always followed by restric- The intent of this article is to examine the reasons tive actions. Federal Reserve actions, as measured by mone- This public controversy about the alleged discrep- tary aggregates, have not always been consistent with ancy between some monetary policy statements and stated monetary policy.
    [Show full text]
  • Speculative Capitals and Demand Pull Inflation Below Full Employment
    Speculative capitals and demand pull inflation below full employment Angel Asensio CEPN, University Paris 13 This draft, 22 October 2011 Abstract In a series of papers published in The Time in 1937, while the rate of unemployment was around 12% in the UK, Keynes expressed his concern with potential inflationary pressures owing to the government proposal to finance rearmament partly by means of borrowed money. The topic still was the central purpose in 1940 of his How to pay for the war: "Some means must be found for withdrawing purchasing power of the market; or prices would rise until the available goods are selling at figures which absorb the increased quantity of expenditures – in other words the method of inflation." This suggests, in accordance with Minsky's views, that a demand pull inflation may develop in Keynes's theory, in spite of unemployment, as a result of an excess "purchasing power" due to the banking system financing of expenditures that eventually prove unable to generate the revenues required for the debt repayment and for the withdrawal of the related amounts of purchasing power. Based on Keynes and Minsky arguments, the paper examines whether/how the financing of bad debts on a large scale - instead of rearmament - is capable of moving inflationary forces from asset markets (where they remained confined in the aftermath of the 2008 financial crisis) to the whole economy, thereby triggering a demand pull inflationary process in spite of strong unemployment. 1. Introduction The asset prices recovered rapidly in the aftermath of the 2008 financial crisis, partly because the Fed managed so that transactions could be made at increasing prices by providing the financial sector with the huge amounts of money it demanded at very low interest rates, and partly because authorities have been implementing the new prudential regulations rather smoothly in Europe and the US, so that unbridled speculative finance seems not to have been dissuaded severely.
    [Show full text]
  • A HISTORY of the FEDERAL RESERVE: VOLUME 2, BOOK 1, 1951-1969 Element of Martin’S Tenure
    BOOKREVIEW The Birth of the Modern Fed subject of most of book one. It’s a period in which the Fed was seen as largely independent — dramatically so when compared to previous wartime years — and stands as the first test of the newly independent Fed’s ability to maintain price stability. Between 1951 and 1965, inflation dropped from more than 8 percent to being constrained within a range of zero percent to 4 percent. This accompanied a shift in Fed policy to the “bills-only” doctrine, which meant that the Fed would conduct open- market operations only through the purchase of short-term Treasury bills. This left the long-term Treasury rates to be set by market forces and was a departure from the years when the Fed was used as a tool to cheaply finance wartime spending. Yet Meltzer also highlights a contrary and important A HISTORY OF THE FEDERAL RESERVE: VOLUME 2, BOOK 1, 1951-1969 element of Martin’s tenure. Martin described his view of Fed CHICAGO: UNIVERSITY OF CHICAGO PRESS, 2010, 682 PAGES independence as qualified. It assumed the Fed’s independ- ence within the government, not from the government. A HISTORY OF THE FEDERAL RESERVE: VOLUME 2, BOOK 2, 1970-1986 There were times when Martin was willing to coordinate CHICAGO: UNIVERSITY OF CHICAGO PRESS, 2010, 628 PAGES policy with the executive branch. BY ALLAN H. MELTZER In fact, Martin saw an important function for the Fed’s open-market operations as a way to pursue an “even keel” REVIEWED BY STEPHEN SLIVINSKI policy wherein the Fed would stand ready to make sure that auctions of Treasury bills would not fall flat.
    [Show full text]
  • Unit 4: Money and Monetary Policy
    Unit 4: Money and Monetary Policy 1 Why do we use money? What would happen if we didn’t have money? The Barter System: goods and services are traded directly. There is no money exchanged. Problems: 1. Before trade could occur, each trader had to have something the other wanted. 2. Some goods cannot be split. If 1 goat is worth five chickens, how do you exchange if you only want 1 chicken? Example: A heart surgeon might accept only certain goods but not others because he doesn’t like broccoli. To get the surgery, a pineapple grower must find a broccoli farmer that likes pineapples. 2 What is Money? Money is anything that is generally accepted in payment for goods and services Money is NOT the same as wealth or income Wealth is the total collection of assets that store value Income is a flow of earnings per unit of time Commodity Money- Something that performs the function of money and has alternative uses. – Examples: Gold, silver, cigarettes, etc. Fiat Money- Something that serves as money but has no other important uses. – Examples: Paper Money, Coins 3 3 Functions of Money 1. A Medium of Exchange • Money can easily be used to buy goods and services with no complications of barter system. 2. A Unit of Account • Money measures the value of all goods and services. Money acts as a measurement of value. • 1 goat = $50 = 5 chickens OR 1 chicken = $10 3. A Store of Value • Money allows you to store purchasing power for the future. • Money doesn’t die or spoil.
    [Show full text]
  • Monetary Policy Monetary Policy
    Monetary Policy Monetary Policy Monetary Policy – The actions the Fed takes to influence the money supply to target interest rates in order to pursue macroeconomic objectives of: 1. Price stability 2. Full employment 3. Economic growth 4. Stability of financial markets and institutions Price Stability Inflation undermines money’s function as a store of value. During 1979-1981, inflation rates were the highest the U.S. has ever experienced during peacetime. When Paul Volcker become chairman of the Fed in 1979, he made fighting inflation his top priority. Since then, both Greenspan and Bernanke made price stability a priority. Full Employment Under law, the Fed is mandated to promote high employment. This goal falls upon the other branches of the government; the President and Congress, but the Fed is mandated by law to promote monetary conditions that are conducive to employment. Fed’s Dual Mandate In 1977, Congress amended The Federal Reserve Act, stating the monetary policy objectives of the Federal Reserve as: "The Board of Governors of the Federal Reserve System and the Federal Open Market Committee shall maintain long run growth of the monetary and credit aggregates commensurate with the economy's long run potential to increase production, so as to promote effectively the goals of maximum employment, stable prices and moderate long-term interest rates.” http://www.chicagofed.org/webpages/publications/speeches/our_dual_mandate.cfm Dual Mandate “[M]onetary policy aims to minimize the deviations of inflation from 2 percent and the deviations of the unemployment rate from 6 percent, with equal weight on both objectives.” Yellen November 13, 2012 http://www.federalreserve.gov/newsevents/speech/yellen20121113a.htm Short-run tradeoff between Inflation and Unemployment The Fed can expand aggregate demand which will lower unemployment, but this comes at a cost of higher price levels.
    [Show full text]
  • Construction and Monetary Policy: a View from the Sidelines
    February 15, 1999 Federal Reserve Bank of Cleveland Construction and Monetary Policy: A View from the Sidelines by Sandra Pianalto The Federal Reserve’s popularity in unemployment that was 1½ percentage the business community is as high as it points higher than the national average. has been in the 15 years I’ve been in the On January 27, Sandra Pianalto, System, and perhaps as high as ever in For some reason, the business commu- First Vice President and Chief Oper- our 86-year history. I often hear someone nity is quick to give us the credit. Or per- ating Officer of the Federal Reserve say, “The Fed sure is doing a good job.” haps I’ve said that backwards. It is often Bank of Cleveland, spoke at the an- supposed that the Federal Reserve has nual forecast dinner held by the As Chief Operating Officer of the Fed- given borrowers, and your industry in Home Builders’ Association of eral Reserve Bank of Cleveland, I’m particular, access to relatively cheap Greater Akron. This Economic Com- tempted to interpret such a compliment credit, which has allowed our economy mentary is adapted from her remarks. as a statement about how efficient we to grow. If this is what “doing a good have become at clearing checks. And job” means regarding the performance indeed we have. But that isn’t what you of the Federal Reserve, then it’s a back- But here the analogy breaks down. We mean, is it? handed compliment at best. are not the arbiters of credit; the finan- cial system is.
    [Show full text]