February 21, 2025 12:50 GMT
MNI PODCAST: FedSpeak-Nobel Laureate Johnson On Trump 2.0
MNI interviews economics Nobel Laureate Simon Johnson in a podcast.
MNI (WASHINGTON) - EXECUTIVE SUMMARY
- Nobel Laureate Johnson believes the policy mix coming out of the new administration so far makes for an uncertain growth and inflation picture that should keep the Federal Reserve on hold for now.
- The Fed is also faced with uncertainty over R-star, which is likely higher than it was in the unusually low rate period of the 2010s, Johnson said.
- The MIT professor and former IMF chief economist thinks Trump will leave monetary policy alone despite earlier threats. “You do not want to get on the wrong side of the bond market.”
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