Jeffrey Lacker, a senior scholar at the Mercatus Center and former president of the Federal Reserve Bank of Richmond, dives into the evolution of the Fed's credit policy. He reflects on the Shadow Open Market Committee's role and insights from a recent conference. Lacker discusses the shifts in monetary policy frameworks, including inflation targeting changes. He explores the implications of helicopter drops for fiscal policy and the evolution of the Fed's role as a lender of last resort, especially during financial crises.

Former Federal Reserve Bank of Richmond President, Jeffrey Lacker, discusses Fed governance issues and lessons from recent inflation surge on Macro Musings. Topics include Fed restructuring, stress testing, oil price shocks' impact on economy, inflation targeting challenges, and recommendations for Fed policy review.

Former president of the Federal Reserve Bank of Richmond, Jeffrey Lacker, talks about Fed governance issues including its evolving nature, increasing politicization, relationship with Congress, impact of governance practices on inflation surge, concerns about political influence and communication norms, effect of policy framework and forward guidance, integrity and active listening at the Fed, differentiation of credit operations and monetary policy, and regulatory limitations in the global dollar system.