NC State Ag Economist Dr. Mike Walden – “Big Changes from the Fed”


Mary:  I’m Mary Walden with economist MW welcoming you to the economic perspective.  Today’s program looks at big changes from the Fed.  Mike, the Federal Reserve, or Fed for short, is in the middle of major decisions that involve both policy and personnel.  What are they and why are they important?

Mike: Summary Answer

  1. two big policy decisions
  2. whether to increase short-term interest rates again
  3. also, implementing their plan to reduce the Fed’s investments, which ballooned

from $1 trillion prior to the Great Recession to $4.5 billion afterward

  1. regarding personnel, 4 of the 7 member governing board will soon be vacant,

including the vice-chair

  1. so President Trump will have an opportunity to impact future Fed policy with

his nominations

  1.   further – the term of the chair – Janet Yellen – expires at the end of January –

another decision for the President

  1. all this matters because Fed has influence on inflation, interest rates, and the

pace of economic growth

  1. I’m MW

Mary:  And I’m Mary Walden for N C State Extension