Former Fed President Plosser on Fed, Markets, Banks

The transcript discusses the challenges faced by the FOMC, including issues with strategy and market perception. It delves into the psychology of decision-making within the FOMC, highlighting the role of dissent and transparency. The conversation also touches on systemic risk, particularly concerning Deutsche Bank, and the preparedness of central banks. Finally, it examines bank regulation, the concept of 'too big to fail,' and the need for simpler regulations with higher capital requirements.

What psychological factors might influence the decisions of the FOMC members?

How does the current economic situation on Main Street compare to the Federal Reserve's stance?

What are the potential risks associated with banks that are considered 'too big to fail'?