Michael Feroli, chief U.S. economist at JPMorgan Chase, has a fascinating analysis out Thursday on how Federal Reserve Chairman Ben Bernanke is moving to lock in new procedures for setting interest rates that will last long after his term ends in January 2014. The upshot is that Bernanke, who vowed to depersonalize the Fed, could end up imprinting his style on the central bank much more strongly than did his predecessor, Alan Greenspan.
The procedural changes “would add a significant inertial element” that would keep policymaking from changing quickly even after Bernanke has left the Fed, Feroli says.
Read Full Article »