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MNI INTERVIEW: US Faces Growing Fiscal Dominance Risk-Leeper

MNI interviews Eric Leeper, former Fed economist, on fiscal and monetary policy outlooks.

MNI (WASHINGTON) - Ballooning U.S. deficits and a lack of political resolve to tackle them are pushing the American economy toward a situation of fiscal dominance that make it harder for the Federal Reserve to control inflation, Eric Leeper, a former Fed economist and adviser to global central banks, told MNI.

“We are staring at growing fiscal dominance in the United States,” said Leeper, a former staffer at the Atlanta Fed and the Fed's Board of Governors. “I don’t see massively different outcomes by the two parties in terms of fiscal behavior.”

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MNI (WASHINGTON) - Ballooning U.S. deficits and a lack of political resolve to tackle them are pushing the American economy toward a situation of fiscal dominance that make it harder for the Federal Reserve to control inflation, Eric Leeper, a former Fed economist and adviser to global central banks, told MNI.

“We are staring at growing fiscal dominance in the United States,” said Leeper, a former staffer at the Atlanta Fed and the Fed's Board of Governors. “I don’t see massively different outcomes by the two parties in terms of fiscal behavior.”

Keep reading...Show less