SPECIAL TOPICFederal Reserve
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The Federal Reserve chairmanship is changing over at a crucial time in monetary policy. Recently, the Federal Reserve has been following an aggressive quantitative easing (QE) strategy, buying $85 billion in bonds each month, in an attempt to stimulate markets.  As a result, the Fed’s balance sheet has grown to historic proportions.  

Federal Reserve Chairman Ben Bernanke had suggested that the Fed may begin slowing or “tapering” QE  (phasing down) as soon as September. This suggestion alone sent the US market into a tailspin, resulting in a total market loss of 4 percent value in 48 hours. Mortgage rates went up a full percentage point to above 4.5 percent for a 30-year loan.

What the Federal Reserve should do next is contentious, even among the various Fed governors. President Obama's nomination of Janet Yellen to assume the responsibilities of Federal Reserve chairwoman comes at a precarious time. AEI scholars are keeping a close eye on this developing story.

John H. Makin, Stephen D. Oliner, and Desmond Lachman are among the AEI scholars who have been following the Fed’s actions closely. Here is a collection of their work and other selected pieces on the Federal Reserve chairmanship race.

BEWARE THE CLIFF
Bernanke and Yellen should make deflation avoidance a more clearly stated Fed objective
AFTER THE CONFIRMATION
The Fed must deal with the challenges facing the nation's central bank
TAPERING QE
Steven Oliner talks quantitative easing and the Fed's taper threat