Former Fed President Broaddus on Fed's Goals, Focus

The transcript discusses the current state of financial conditions and the mystery of inflation. It explores the role of rules-based monetary policy, particularly the Taylor rule, in guiding the Federal Reserve's actions. The importance of considering both short-term market reactions and long-term goals, such as price stability and full employment, is emphasized. The responsibilities of the Federal Reserve Chair, including forming consensus and leading discussions, are highlighted. The transcript concludes with speculation on future Fed leadership and the dynamics of decision-making within the Federal Reserve.

What is the primary focus of the Federal Reserve's mandate according to the first section?

• Reducing government debt

• Maintaining price stability and full employment

• Expanding the money supply

• Increasing interest rates

How does the second section describe the application of a rules-based policy?

• As a method to increase inflation

• As a way to decrease employment

• As a flexible approach considering multiple factors

• As a strict adherence to predetermined rules

What change in perspective is discussed in the second section regarding individuals in leadership roles?

• They tend to become more dovish or hawkish

• They become more focused on short-term goals

• They strictly follow the Taylor rule

• They ignore market reactions

What is emphasized as a key responsibility of the Federal Reserve chair in the final section?

• Imposing personal views on the board

• Focusing solely on inflation control

• Building consensus among board members

• Ignoring dissenting opinions

According to the final section, what is a challenge faced by the chair of the Federal Reserve?

• Decreasing the money supply

• Increasing interest rates rapidly

• Balancing diverse views and forming a consensus

• Reducing the number of board members