October 31, 2016

MR. GREENSPAN HAD ALREADY BEEN BURNED...:

Yellen Imitates Greenspan in Reversal of Mid-1990s Rookie Role (Rich Miller, October 31, 2016, Bloomberg)

When Janet Yellen was a rookie policy maker in September 1996, she and fellow Federal Reserve Governor Laurence Meyer visited Alan Greenspan's office to make a pitch for higher interest rates. With unemployment near 5 percent, they were worried about inflation kicking up if joblessness dropped much lower.

Then Fed Chairman Greenspan listened to their concerns, but left rates unchanged until the following year. Unemployment eventually fell to a 30-year low of 3.8 percent in 2000 and inflation never really took off.

Now Yellen finds herself reprising Greenspan's role as some of her fellow officials push for higher interest rates. Again, joblessness is around 5 percent, near the level many economists reckon is equivalent to full employment.


...by his unnecessary bona-fide-proving hike in '87

Posted by at October 31, 2016 6:51 PM

  

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