Macro Musings with David Beckworth Jim Clouse on the Last 4 Decades at the Most Powerful Central Bank in the World
8 snips
Oct 20, 2025 Jim Clouse, a veteran of the Federal Reserve with 36 years of experience, shares insights on pivotal moments in U.S. monetary history. He discusses the Fed’s evolution during crises like Y2K, 9/11, the Great Financial Crisis, and the COVID pandemic. Clouse examines the stigma around the discount window, critiques proposals to end interest on reserves, and explains the transition to increased transparency at the Fed. He also explores the implications of stablecoins and cashless payments on currency demand and Fed operations.
AI Snips
Chapters
Books
Transcript
Episode notes
Entering The Fed During The Money Debate
- Jim Clouse joined the Fed in July 1989 and started in a section focused on monetary aggregates.
- He described internal debates between money-focused and Phillips-curve approaches during that era.
Transparency Became Central To Fed Legitimacy
- The Fed shifted from secrecy to a much larger communications toolkit over decades.
- Transparency evolved via statements, minutes, and press conferences to improve public understanding.
Y2K War Room And Its Calm Outcome
- The Fed built a Y2K command center with global screens and staffed operational teams.
- After midnight the systems held up, which Clouse credited to the massive preparation.
