save. I think the problem is in the governmental sector. The things can be done to private saving, but I think that they're minute in comparison to what needs to be done to fix the federal budget deficit. Fed Chairman Powell recently said that the budget now is unsustainable. And I think he's correct. And the reason he's correct is we have negative national saving. We cannot have an increasing level of prosperity in this environment. So the economy has really held hostage to the federal fiscal situation. Do you think that the Treasury has become a bigger or more important economic actor today relative to the Fed, relative to what the Fed was, say, 15 or even five years ago? We've had two major coordinations of monetary and fiscal policy. The most recent, of course, is the pandemic where the Fed became a partner with fiscal policy. But this was done one time before in the 1970s. Nixon was president. I was a young economist at the Federal Reserve Bank of Dallas and wage and price (32/41)
You are viewing a single comment's thread from: