Ask the Federal Reserve who it is responsible to, and the central bank might say Congress, the economy, or the public. Goldman Sachs adds investment markets, whether or not the central bank likes it.
The Fed and its officials insist they don't cater to outside influences. After the Federal Open Markets Committee at the end of July, Chair Jerome Powell told reporters at the press conference that the central bank would not bend to the political pressure historically common in election years. There have been colorful stories, like when President Lyndon B. Johnson reportedly pushed then-Fed Chair Bill Martin up against a wall as part of his, uh, persuasion.
And Austan Goolsbee, president of the Federal Reserve Bank of Chicago, recently addressed pressure from investors and markets. "We've got to be monitoring the real side of the economy: There's nothing in the Fed's mandate that's about making sure the stock market is comfortable," he told the New York Times in a recent interview.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.