Speaking at last month’s economic policy symposium in Jackson Hole, Wyoming, Federal Reserve Chair Jerome Powell described vividly the challenges that central bankers face in a world of constant change and uncertainty. These challenges make it impossible for the Fed to perfectly fine-tune the economy. Chair Powell’s preferred, gradual approach to raising interest rates is therefore justified. The Fed could meet these challenges even more effectively, however, by adopting and following a monetary policy rule.
September 14, 2018, 10:43 AM EDT
December 12, 2017, 11:02 AM EST
The House of Representatives and Senate have now approved separate plans to overhaul the federal tax system. It now appears likely that a reconciliation process will quickly produce legislation that can pass both chambers of Congress and be signed into law by President Trump. Though far from perfect – it still leaves us with a tax code that is far too complex and riddled with inefficiencies – the final bill, if passed, should nevertheless provide a noticeable boost to the US economy.