Federal Reserve Chair Jerome Powell and Patrick T. Harker, President and Chief Executive Officer of the Federal Reserve Bank of Philadelphia, recently delivered speeches emphasizing the importance of data-based decisions in monetary policy.
Powell delivered a speech at the San Francisco Federal Reserve Bank's Macroeconomics and Monetary Policy Conference. He downplayed the Fed's importance in the medium term, stating that trade and other factors are more significant for the US economy. Powell also mentioned that he doesn't see an elevated risk of recession this year but acknowledged that recessions cannot be ruled out for long periods. He reiterated the Fed's commitment to making decisions based on data and the economic environment, rather than politics. Powell emphasized the importance of integrity and the belief that officials are making decisions based on the most up-to-date understanding of the economy and the outlook [a2f5cb50].
Harker delivered a speech at the Global Interdependence Center 42nd Annual Monetary and Trade Conference in Philadelphia. He discussed the current economic conditions, including high inflation and the resilience of the American economy. Harker emphasized the importance of data in decision-making and expressed optimism about the labor market and GDP growth. He also addressed the need for diversity in the field of economics and the importance of asking the right questions. Harker mentioned the partnership between the Philadelphia Fed and the National Association for Business Economics to bring more underrepresented individuals into the field of economics. He highlighted the impact of diversity on policymaking and decision-making. Harker concluded by urging the audience to commit to ensuring the reputation and relevance of the economics discipline by fostering the economists of tomorrow [7aaf7ee8].
These speeches provide further insights into the Federal Reserve's approach to monetary policy and its focus on data-driven decision-making. Both Powell and Harker emphasized the importance of using data to inform policy decisions and highlighted the impact of economic conditions on the decision-making process. They also addressed the need for diversity in the field of economics and the value of asking the right questions to ensure a comprehensive understanding of the economy and effective policymaking.