Thomas Drechsel, an assistant professor of economics at the University of Maryland, shares insights on the intricate relationship between political pressure and the Federal Reserve's decisions. He discusses innovative methods to measure monetary policy shocks, emphasizing the importance of central bank independence. The conversation highlights historical influences, particularly during pivotal elections, and examines how political factors can drive inflation changes. They also explore the integration of machine learning and natural language processing in analyzing economic data, paving the way for more effective monetary policy assessment.
