Kayla Lahti
@klahti
Program manager, financial markets and monetary policy @mercatus.
A policy brief on the mission creep: mercatus.org/research/polic…
Today in a CNBC interview, I called for a review of the Federal Reserve. It is my belief that the central bank should conduct an exhaustive internal review of its non-monetary policy operations. Significant mission creep and institutional growth have taken the Fed into areas that…
Public comment on Proposal to Weaken Capital Rules for G-SIBs by @SheilaBair2013, @tom_hoenig, and Thomas Curry. finregrag.com/p/comment-on-p…
I think a key challenge with the “Powell struggle” is that the supporters of President Trump, even the well educated smart non-finance tech bros, seem convinced that “the Fed cutting rates” equals rates falling across maturities. That a stubborn Fed is the only force holding…
In case you missed it! George (@George_J_Hall) and @DavidBeckworth explain how the monetary authorities and the fiscal authorities are playing a dangerous game of chicken.
Fun Fact: Federal Reserve Board operating expenses have *quadrupled* from 2004 to 2023, reaching ~$1 billion in 2023, according to the Annual Reports of the Board of Governors of the Federal Reserve System. federalreserve.gov/publications/a…
.@SecScottBessent calls for an exhaustive internal review of non-monetary policy operations at the @federalreserve
Remarkable to see the Treasury Secretary urge the Fed to get its house in order. But calling for an internal review just replicates the type of oversight that already exists.
Today in a CNBC interview, I called for a review of the Federal Reserve. It is my belief that the central bank should conduct an exhaustive internal review of its non-monetary policy operations. Significant mission creep and institutional growth have taken the Fed into areas that…
If folks want a jump start on examining the entire Federal Reserve as an institution and assessing whether it has been a success, this paper by @GeorgeSelgin, @lawrencehwhite1, and Bill Lastrapes is a great place to start. sciencedirect.com/science/articl…
.@SecScottBessent: "What we need to do is examine the entire Federal Reserve institution and whether they have been successful... All of these Ph.D.s over there, I don't know what they do... This is like Universal Basic Income for academic economists."
A 2024 post by @tom_hoenig relevant to current discussions around Fed independence. Monetary Policy: Narrowing Discretion, Improving Outcomes finregrag.com/p/monetary-pol…
Interesting op-ed but the premise that Fed independence is a policy choice is wrong if we get to fiscal dominance. It doesn't matter who is president if fiscal insolvency is pressing. That is why the WWII example below does not work here: the Fed had to help fund WW2. (1/2)
New @nytimes op-ed by former Fed chairs Ben Bernanke and Janet Yellen nytimes.com/2025/07/21/opi…
Episode number 500 is happening this week on @Macro_Musings. Today's newsletter is on this milestone and includes a NGDP targeting mug giveaway contest. macroeconomicpolicynexus.substack.com/p/macro-musing…
As the White House continues to scrutinize the Fed's HQ renovations, the central bank publishes a virtual tour on its website and highlights changes made since the 2021 proposal federalreserve.gov/faqs/building-…
Kayla—nice post. Yes, the Fed’s inspector general rubber-stamps the Board of Governors (and yes, I have actual experience with the Fed’s IG doing just that). You’re right to call for an independent IG, bc the current structure is not at all a check & balance on Fed malfeasance.