STAFF NEWS & ANALYSIS

The Fed’s Real Challenge Is Its Loss of Credibility, Not How It Handles the Next Downturn

By Daily Bell Staff – July 06, 2016

Where the Fed Will Be When the Next Downturn Comes … The easy-money policy may bump inflation over 3% in the next few years, setting up interest-rate increases. -WSJ

This article in the Journal provides us with a scenario regarding another slump and how the Fed will react.

It is written by Martin Feldstein, chairman of the Council of Economic Advisers under President Ronald Reagan and a member of the Journal’s Board of Contributors.

The notable point of the article is that despite conversations about tightening, easing is going to be the Fed’s continued stance.

Beyond this, Feldstein’s perspectives are not remarkable. However, notably, the article’s feedbacks are more broad-based and skeptical than Feldstein’s perceptions.

They show us how