Monday, October 14, 2024
Hoover Institution | Stanford University
The Fed’s Evolving Interpretation and implementation of its dual mandate. This session included presentations by SOMC members Athanasios Orphanides, Andrew Levin and James Bullard, who recently joined the SOMC after retiring as President of the Federal Reserve Bank of St Louis. Steve Davis of the Hoover Institution moderated this panel. Orphanides described the evolution of the Fed’s statutory mandate since the founding of the Federal Reserve in 1913, emphasizing that price stability is essential for a well-functioning monetary system that fosters healthy economic performance. Bullard discussed how theoretical innovations in economic and monetary policy influenced the Fed’s interpretation and implementation of monetary policy. Levin argued that there should be external reviews of the Fed, similar with all other government organizations and recommended that the Government Accounting Office should audit the Fed, just as it audits other government organizations.