Saturday, November 22, 2014

The Fed's role

Yesterday, William Dudley, the president of the NY Fed appeared before the Senate Banking Committee. Naturally, many of the senators did a fair amount of grandstanding. But I thought the following comment from Dudley about the Fed's role said a lot, “It is not like a cop on the beat. It’s more like a fire warden.” 

Most cops on the beat would know more about what's going on than the fire warden who appears after the fire has started.

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