Why it matters what the public thinks about Janet Yellen: - The Fed’s public standing matters because it helps to shape the political environment in which the Fed makes monetary policy. - The greater the public’s confidence in the Fed, the greater the Fed’s autonomy and its ability to make tough policy choices. - When public confidence is low, the Fed’s political resolve to make hard choices might be questioned. - In turn, uncertainty about future Fed policy undermines the effectiveness of monetary policy. - Snapshots of public approval can be misleading. - We can’t tell from the Greenspan and Bernanke final marks, for example, what forces shape public confidence in the Fed. - And those marks change over time – even after a chair’s time on Constitution Avenue has past. t.co/LWV30gumxO
Posted on: Wed, 12 Feb 2014 09:54:24 +0000
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