Peterson Institute's Posen on Fed Chair Contenders

The transcript discusses the selection of the Federal Reserve Chair, highlighting the potential political influence on monetary policy. It examines historical examples, such as Arthur Burns and Alan Greenspan, and debates the independence of the Fed Chair. The urgency of Janet Yellen in unwinding the balance sheet is also discussed, along with concerns about the politicization of the Federal Reserve. The conversation touches on inflation rates and the potential for political accommodation in financial regulation.

What is the main concern regarding the candidates for the Federal Reserve chair?

• Their academic qualifications

• Their age and health

• Their loyalty to the President

• Their experience in banking

How long is the term for a Federal Reserve chair?

• 6 years

• 4 years

• 7 years

• 10 years

What is Janet Yellen's primary focus before leaving her position?

• Unwinding the balance sheet

• Strengthening the dollar

• Increasing interest rates

• Reducing inflation

What is a potential risk of having a dovish Fed policy in the current economic climate?

• High unemployment

• Increased inflation

• Decreased GDP

• Rising interest rates

What is a sign of the politicization of the Federal Reserve Board?

• Frequent changes in leadership

• Lack of full membership

• High inflation rates

• Increased interest rates

Why is it important to have Reserve Bank presidents ready to stand up?

• To ensure monetary policy is followed

• To decrease inflation

• To maintain stability in the Federal Reserve

• To increase interest rates

Which Fed chair was noted for being accommodationist to political desires?

• Ben Bernanke

• Paul Volcker

• Janet Yellen

• Alan Greenspan