Macro Musings with David Beckworth Marc Giannoni on the Fed’s Framework Review, it’s Independence, and the Future of R-Star
29 snips
Sep 22, 2025 In this engaging discussion, Marc Giannoni, the chief U.S. economist at Barclays Capital and former central banker, dives into the intricacies of the Fed's 2020 Framework Review. He highlights critical issues surrounding Fed independence and the dangers of fiscal dominance. Marc elucidates his research on r-star, explaining its decline amidst shifting demographics and productivity trends. He also examines whether monetary policy has become more or less effective, challenging common perceptions with insights from his influential work.
AI Snips
Chapters
Books
Transcript
Episode notes
Career Path Shaping Monetary Views
- Marc Giannoni recounts his career from the Swiss National Bank to Princeton, the New York Fed, Dallas Fed, and Barclays.
- He credits Princeton mentors (Woodford, Bernanke, Sims) and central bank experience for shaping his monetary-policy focus.
Inside The 2020 Framework Review
- Giannoni describes his role steering the Fed's 2020 framework review across eighty researchers.
- The effort produced the 2020 strategy statement amid COVID and extensive FOMC briefings.
What Was Lost Moving From FAIT To FIT
- Giannoni argues the 2025 statement dropped the makeup (FAIT) element and shifted back toward flexible inflation targeting.
- He warns dropping makeup policy weakens an automatic stabilizer useful at the effective lower bound.
