The Effect of Fed Policy on the Real Economy

Carol Costello: How sensitive do you think GDP and inflation actually is to the shrinking of the balance sheet or the raising of interest rates? And also, is it sort of a real effect or is it kind of a narrative effect? "I don't think I have a super smart answer except that if you look at history as a guide, you did see...the effect of monetary policy flow through to the real economy," she says.Costello: The Fed has been happy with their policy; we're living in a different environment where we've seen an inflation problem since 1970s.

Transcript

Play full episode

The AI-powered Podcast Player

Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!

Get the app