Former Federal Reserve economist Claudia Sahm sounds off on rebutting the former Treasury secretary and the struggle to guide the economy amid a pandemic
Sahm has been particularly vocal in the debate over the government’s response to the pandemic, advocating for stimulus checks and generous unemployment benefits, and shooting down arguments that such actions would pose dangerous inflation risks. She’s worked closely with Sen.
The labor shortage was not going to be solved by cutting off the jobless benefits. And that isn’t so much about the effect of jobless benefits. I mean, it is extra income, so workers can wait a little while to find the job that fits with what they were doing before. Research shows that is a benefit of giving people time to find that job again.
But I think that was because at the beginning of the recession, there was no morality play. Almost 20 percent of workers, by some measures, lost their job. But as we go further and further along, this is a smaller and smaller group. And so, you get back into, “The unemployment insurance is causing problems in the economy.”
It’s tough. During the campaign, his whole thing to build back better was really about getting to someplace better than February of 2020. The surge last winter really set the Biden administration back in their agenda, because Covid came back with a vengeance. The economy started to stall out. The vaccine wasn’t here yet. It was clear that the relief wasn’t going to be enough to get us through the winter. And so instead of the better part, they had to just do the back, the building back.
There’s more momentum at the Fed towards an interest rate increase as early as next year, even though it doesn’t seem like officials are that confident that the unemployment rate is actually going to get back down to where it was before the pandemic. I’m curious if you think that that’s a smart signal to be sending.
What I was impressed with at the September meeting is that Jay is still clearly hanging on to — he can’t really build a consensus about next year, because the consensus isn’t there. But they did manage to keep the [projections on the next rate hike] balanced. This was a meeting that it could have been, and I think people thought the majority of participants would say, “In my opinion, we’re gonna raise rates next year.” And instead, we got an even split.
And seeing how he worked with her on the Community Reinvestment Act — he really looks to her for her professional judgment. Jay is really good about respecting what he knows and what he doesn’t know. He seeks out what he doesn’t know. That’s why he likes Twitter. He’s a sponge, he’s out there, and he’s questioning his beliefs. And he’s asking staff to explain things.
There’s some been some really disastrous macroeconomic policy advice that has come from very senior, well-respected members of the economics profession. And then there’s also a culture that really beats down divergent voices. I saw that inside of the Fed. And outside of the Fed in academia and some of the fiscal policy circles, it’s really bad. And so, you’re just not going to make a lot of progress on economic policy unless you have a whole team of people who are rowing in the same direction.
But to your question about, would I recommend this to other people? No. Although I’ve mentored some people that are pretty fiery, and I tell them, it’s your life, but I want you to know that when you do this, there will be a cost to this. Remember, I want economic policy to be good, like, economists to do good in the world. Larry is something of a — I don’t know — I see him as a roadblock to achieving that goal. The policy advice he gives, the way he presents himself, the way he interacts with people who disagree with him. It’s really hard for me to see how that’s doing good in the world. I don’t think it’s his intention to do bad in the world. It’s just, he’s so prominent.
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
18 former NBA players arrested by federal authorities in alleged health care scamBREAKING: 18 former NBA players have been arrested and charged with defrauding the NBA’s Health and Welfare Benefit Plan out of $4,000,000, officials say.
Baca lebih lajut »
Former Tesla worker speaks out after winning $137 million lawsuit
Baca lebih lajut »
The Theranos Trial: Former Safeway CEO Testifies Over Failed PartnershipThe former CEO for Safeway took the witness stand in the trial of Elizabeth Holmes to discuss years of promises by Holmes that led the grocery-store chain to invest more than $350 million into a partnership with Theranos that never fully materialized
Baca lebih lajut »
Former FBI Agents Blame ‘Misogynist’ Culture For Botched Larry Nassar InvestigationThe Department of Justice said it will review the misconduct of agents in the USA Gymnastics case, but FBI veterans say the problems run much deeper.
Baca lebih lajut »
Former USC campus gynecologist's accusers call for investigation of top university officialsLegal experts said the need for an investigation into whether administrators knew about alleged sexual abuse by Dr. George Tyndall and failed to act should have been obvious.
Baca lebih lajut »
The unexpected things that the Royal Family just won't eat, according to a former Palace chefWe all know - thanks to The Crown - that the Royal Family have some pretty unique rules to follow, including avoiding certain foods in public. The Queen also is
Baca lebih lajut »