Thanks to the Fed not raising interest rates this week, we can keep this party going for a few more weeks/months. We keep hearing in some small corners of the media that the Fed’s model is broken. But what does that really mean? I came across this video recently and thought it was a gem and addresses this point. Its a long video, and for the most part, its a very dry subject and theoretical (I skipped most of it myself). But one section from Dr. Jason Cummins, who is an ex-Fed member, really stood out and was very refreshing to hear. He turns it into more of a rant, but makes some very good points of how the Fed is working with a broken model and needs to be addressed. I invite you to watch this video (about 25 minutes long) that we can all understand and relate to .
Bio: Jason Cummins joined Brevan Howard in 2004 and is the Head of Research and Chief US Economist. Jason is also a member of the US Treasury Borrowing Advisory Committee, a government appointed panel of external experts that has served the country for almost half a century. Formerly, Jason was a Senior Economist at the Federal Reserve Board, where he ran the Macro Forecasting team. Jason began his career in 1995 as an Assistant Professor of Economics at New York University and also taught at Harvard University. Jason earned a Ph.D. in Economics from Columbia University and graduated with high honours from Swarthmore College.