Ones and Tooze The Future of the Federal Reserve
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Aug 29, 2025 The podcast delves into the controversial firing of Federal Reserve Governor Lisa Cook, raising questions about the independence of the Fed and its political entanglements. The discussion highlights the need for diversity in economic policymaking. It then takes a fun turn, exploring the journey of hamburgers from their Mongolian roots to American icon status, including challenges in beef production. A unique highlight is the Big Mac Index, comparing global currencies and purchasing power, while also lifting the veil on how McDonald's produces its burgers.
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Historic Threat To Fed Independence
- Firing a Fed governor is almost unprecedented and threatens norms of central bank insulation from politics.
- The move raises questions about the Fed's ability to resist political pressure on interest-rate policy.
Lisa Cook’s Unusual Path To The Fed
- Lisa Cook has a distinguished academic and policy background across the Fed system and Treasury.
- She is the first Black woman to serve as a Federal Reserve governor and was nominated by Joe Biden in 2022.
Independence Creates Monetary Credibility
- Fed independence matters because it builds credibility and shapes expectations that make monetary policy effective.
- Lacking credibility forces costlier short-term actions to convince markets and the public of policy commitment.