2024-11-11
56 分钟Loretta Mester was president and CEO of the Federal Reserve Bank of Cleveland from 2014 through June of 2024, and she is a 39-year veteran of the Federal Reserve System. Loretta is also currently an adjunct professor of finance at the Wharton School at the University of Pennsylvania. She joins David on Macro Musings to talk about her time as Fed president and a recent paper she delivered on the Fed’s operating system. David and Loretta also discuss the ongoing battle against inflation, what to expect from the upcoming Fed framework review, and much more. Transcript for this week’s episode. Register now for Building a Better Fed Framework: The AIER Monetary Conference. Loretta’s Cleveland Fed profile Loretta’s Wharton profile David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings Check out our new AI chatbot: the Macro Musebot! Join the new Macro Musings Discord server! Join the Macro Musings mailing list! Check out our Macro Musings merch! Related Links: *The Fed’s Ample Reserves Monetary Policy Operating Framework: It Isn’t as Simple as it Looks* – Remarks by Loretta Mester for the Panel on The Conduct of Monetary Policy: Evolution from Free Reserves to the Corridor and Floor Systems at the Shadow Open Market Committee 50th Anniversary Conference *Reserve Demand Elasticity (RDE)* by the Federal Reserve Bank of New York Timestamps: (00:00:00) – Intro (00:02:18) – Loretta’s Career Path and Tenure at the Cleveland Fed (00:10:42) – The Ongoing Battle Against Inflation (00:17:53) – Evaluating FAIT and What to Expect from the 2024-25 Fed Framework Review (00:26:03) – Corridor vs. Floor: The Evolution of the Fed’s Operating System and its Policy Implications (00:41:31) – Estimating the Demand for Bank Reserves (00:45:57) – Addressing Over-reliance on the Fed in the Interbank Market (00:52:45) – Loretta’s Thoughts on Central Clearing and Increased Use of the Discount Window (00:55:23) – Outro
Welcome to Macro Musings, where each week we pull back the curtain and take a closer look at the most important macroeconomic issues of the past, present and future.
I am your host, David Beckwourth, a senior Research Fellow at the Mercatus center at George Mason University.
And I'm glad you decided to join us.
Our guest today is Loretta Mester.
Loretta was President and CEO of the Federal Reserve bank of Cleveland from 2014 through June of this year and is a 39 year veteran of the Federal Reserve System.
Loretta is currently an adjunct professor of finance at the Wharton School at the University of Pennsylvania.
Loretta joins us today to discuss her time as Fed President and a recent paper she delivered on the Fed's operating system.
Loretta, welcome to the show.
Thanks very much for having me.
Great to have you on.
Now, I ran into you at the Shadow open market committee's 50th anniversary conference at Hoover, and it was a great time.
Great conference.
You had a fascinating paper we're going to get to in a minute.
And I was thinking, Loretta, the first time I met you was at that same facility at a Hoover monetary policy conference.
And as you know, they have these dinners at the end of the day and they make sure you sit with people that you don't know.
I guess that's the intent at least.
And so I got to meet you, which is great.
But as it turned out, you had me to the left of yourself and then Evan Koenig to your right, and we both happened to be nominal GDP targeting advocates.
And I believe this was like in 2019, sometime around there.
That's right.