by andrew stuattaford
Paul Volcker would have been appalled by the Fed's complacent reaction to growing inflation last year, a blunder that damaged the bank's credibility.
With the Federal Reserve on track to record operating losses for the first time since 1915, Paul H. Kupiec and Alex J. Pollock anticipate what those losses will mean for the federal deficit. "The economic reality, of course, is that Fed losses increase the government's deficit," write Kupiec and Pollock, but they also explain why the Federal Reserve's unique privileges make these losses harder to measure.
New Book On The Fed And Recent Monetary Policy
Desmond Lachman | National Review