Lyle Gramley
Lyle Gramley
Lyle Elden Gramleywas an American economist. Involved in economic policymaking during the Carter and Reagan presidencies, he served on the Council of Economic Advisers from 1977 to 1980, and on the Federal Reserve Board of Governors from 1980 to 1985...
deflation fed flirting lets needs rates running starts toward worry
I think the Fed needs to worry about the possibility it's flirting with deflation if it lets this go too far. When nominal rates get down toward zero, the Fed starts running out of ammunition.
comments secretary seem treasury
It doesn't seem to me at all appropriate for a secretary of the Treasury to make such comments in any event,
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I think he's well aware of the fact they need to improve (communication). It's very a difficult thing to do. I think they're improving.
aiming bond explicitly fed helpful preference state
My own preference would be for the Fed to state explicitly what it's aiming at, ... That would be helpful in quieting the bond market. But I don't think it's going to happen.
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The apparent bubbling up of inflation we saw earlier in the year has quieted down again. Basically it's a picture of inflation staying reasonably tranquil. The Fed should like that.
happen joe
That wouldn't happen with just any Joe Blow.
adding confidence consumer higher improving increases indication interpret prices stock wealth
I would interpret higher stock prices in two ways, ... It's an indication of improving confidence in the economy's recovery, and it increases the confidence and wealth of consumers, adding to consumer spending.
background degree expertise monetary pick whoever
whoever they pick has a considerable degree of background and expertise on monetary policy.
dynamism momentum none normally recovery seen
This is a very different recovery than any I've seen -- there's none of the dynamism or momentum we normally see,
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Not only is he as mentally acute as the average 77-year-old, he's as acute as the average 27-year-old. He has a phenomenal mind and very good judgment, ... People close to the decision-making at the Fed are almost unanimously in great praise of him, as I would be. I think it's a wonderful thing for the Fed and for the country that he's being kept on.
economy fed growing looking risks strongly upside
The Fed is looking at an economy right now that is growing strongly with upside risks to inflation.
aside await content definitive election evidence fed inflation interest itself looking problem raise rates setting sidelines sit whether
The Fed will be content to sit on the sidelines to await more definitive evidence as to whether inflation is going to be a problem or not, ... Setting the election aside entirely, the Fed, looking at the incoming data, would say to itself 'right now we don't want to raise interest rates and we don't need to raise interest rates.'
fed tough
Then the Fed would be in a very tough spot,
along ben fed highly learn markets slips trying
What the Fed is trying to do, by being more transparent and more communicative, is highly desirable. But there are going to slips along the way. Ben will learn and the markets will learn.