Fed Needs to Stop Forward Guidance, Dartmouth's Fisher Says

The video discusses the yield curve's role in the economy, arguing it causes recessions by reducing lending incentives. It examines the Federal Reserve's actions, such as interest rate adjustments and balance sheet tapering, and their effects on the yield curve. The discussion includes whether current economic conditions differ from past scenarios, focusing on the Fed funds rate and treasury refinancing needs. The challenges faced by Jay Powell, including managing forward guidance and addressing economic uncertainties, are also highlighted.

What are the implications of a negative real Fed funds rate compared to previous inversions?

Evaluate responses using AI:

OFF

Discuss the potential effects of forward guidance on market expectations and economic behavior.

Evaluate responses using AI:

OFF