Fed Governor Nominee Milam Says 1970s Rate Hikes Were Inadequate Against Inflation

The nominee stated that the central bank's failure to raise interest rates above the inflation rate during the 1970s demonstrated an insufficient monetary policy response.

Summary

No Summary provided as the original text is short

Terms & Concepts
  • Monetary Policy: Actions undertaken by a central bank to manipulate the money supply and credit conditions to stimulate or restrain economic activity.
  • Inflation: The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.
  • Interest Rates: The cost of borrowing money, or conversely, the return for lending money, often used by central banks as a primary tool to manage inflation and economic growth.