Charles Plosser, who is president and ceo of the Federal Reserve Bank of Philadelphia, has made a speech titled “A Limited Central Bank”. Naturally, he doesn’t call for an end to the Fed, but the speech is still excellent from another perspective. In the course of calling for various reforms of the Fed, he criticizes much of the Fed’s doings since 2007. This is done in a polite but firm way. There is no name-calling, but this speech, made by an insider, provides confirmation of much of the criticism that has been directed at the Fed for its policies. It is ready-made ammunition for Fed critics. It took some courage for him to make such a speech and for that too he is to be commended. The conflicts within the Fed now burst into public view with a clearer focus.

The Best of Michael S. Rozeff