Marketplace A Fed divided against itself
28 snips
Dec 2, 2025 
Daniel Tarullo, a former member of the Federal Reserve Board and an expert in monetary policy, discusses the recent divisions within the Fed regarding prioritizing jobs versus inflation. He explains the significance of consensus for effective communication with the markets and highlights the increasing political pressures affecting FOMC dynamics. Tarullo also reflects on the Fed's evolving role and its long-term challenges, while other topics touch on consumer trends at dollar stores and the growing electricity demands from data centers.
AI Snips
Chapters
Transcript
Episode notes
Fed Split Between Jobs And Inflation
- The Fed currently faces conflicting pressures from inflation and employment that split members' views.
- Daniel Tarullo says these tensions are forcing unusual dissents as members prioritize different mandates.
Regional Presidents Sending A Message
- Reserve Bank presidents are signaling firm limits on how accommodative they'll be in future policy.
- Tarullo reads those remarks as a message to any incoming chair not to push overly loose monetary policy.
Chair: Analyst And Consensus Builder
- The Fed chair must provide analytic leadership and forge consensus around policy.
- Tarullo praises Powell for balancing those roles through a difficult multi-year period.