Fed Needs to Regain Policy Control: Ex-Philly Fed President Plosser

The transcript discusses the impact of exogenous shocks, particularly large deficits, on the financial system and inflation. It highlights concerns about the Federal Reserve's balance sheet, its independence, and the potential for groupthink. The conversation also addresses the abuse of the Fed's balance sheet by fiscal authorities and the risks of losing control over inflation and political independence. The discussion concludes with an examination of inflation dynamics and the challenges of monetary policy.

What historical examples does the speaker provide to illustrate the dangers of central banks losing independence?

How does the speaker view the Fed's actions during the recent financial crisis compared to past crises?

What does the speaker suggest about the Fed's approach to inflation and interest rates?