fiscal policy
10.22.20
The Federal Reserve’s powers have grown enormously in response to COVID-19. Its toolkit now includes a dizzying array of direct credit allocation programs. Chairman Jerome Powell is offering to work directly with the Treasury to support another massive expansion of federal debt. This blurs the line between fiscal policy and monetary policy. The increasingly likely prospect of a Biden administration means we’re looking at an activist Fed for the foreseeable future.
—Peter J. Boettke, Alexander William Salter & Daniel J. Smith, "To fix the Fed, we need true monetary rules," 22 Oct. 2020 {7:30 PM EDT} *
The Federal Reserve’s powers have grown enormously in response to COVID-19. Its toolkit now includes a dizzying array of direct credit allocation programs. Chairman Jerome Powell is offering to work directly with the Treasury to support another massive expansion of federal debt. This blurs the line between fiscal policy and monetary policy. The increasingly likely prospect of a Biden administration means we’re looking at an activist Fed for the foreseeable future.
—Peter J. Boettke, Alexander William Salter & Daniel J. Smith, "To fix the Fed, we need true monetary rules," 22 Oct. 2020 {7:30 PM EDT} *
2.11.20
“Putting the federal budget on a sustainable path when the economy is strong would help ensure that policymakers have the space to use fiscal policy to assist in stabilizing the economy during a downturn,” Powell said Tuesday before the House Financial Services Committee... “The current low interest rate environment means that it would be important for fiscal policy to help support the economy if it weakens,” Powell said Tuesday.
—Sylvan Lane, "Fed chief calls on Congress to cut deficits ahead of potential slowdown," 11 Feb. 2020 {1:34 PM EST}
“Putting the federal budget on a sustainable path when the economy is strong would help ensure that policymakers have the space to use fiscal policy to assist in stabilizing the economy during a downturn,” Powell said Tuesday before the House Financial Services Committee... “The current low interest rate environment means that it would be important for fiscal policy to help support the economy if it weakens,” Powell said Tuesday.
—Sylvan Lane, "Fed chief calls on Congress to cut deficits ahead of potential slowdown," 11 Feb. 2020 {1:34 PM EST}