Answering questions on Twitter
- there is still slack in the labor market and inflation is still below target, so no need to tap the brakes
- I don't think GDP is enough - it's just a measure of the economy as a whole, not who is prospering. We look at a lot of different measures to try to understand how our policies are affecting different groups and sectors. GDP growth is important but not the whole story.
- unemployment statistics aren't that meaningful. The Fed should focus on wage growth to understand if we are at maximum employment
- the recovery from the Great Recession has been frustratingly slow. I don't believe it would be faster without QE - it would've been even slower
- we officially have asymmetric target and actual inflation has averaged around 1.7% below are 2% target. If inflation were at 2.3% for 7 years that shouldn't be concerning
- The biggest factor still too big to fail
- Fed liquidity rules force banks to have ample short-term liquidity and that makes them safer but not safe enough. They need a lot more capital
- I do not believe an inverted curve causes a recession, but it's giving feedback that monetary policy is close to neutral.
- The Fed should be careful not to end the recession
