Fed Needs to Draw the Line on Emergency Policy: JPM’s Michele

The transcript discusses Modern Monetary Theory (MMT) and its impact on economic policies, particularly during crises. It highlights the roles of government and central banks in managing fiscal stimulus and monetary policy. The conversation touches on the challenges of pandemic policies, the Federal Reserve's independence, and potential market implications. The future economic outlook is considered, with a focus on inflation and policy rates. The discussion concludes with potential market reactions to Fed actions, such as tapering bond purchases.

How does the speaker view the Fed's current monetary policy and its implications?

What does the speaker believe is necessary for the Fed to assert its independence?

What are the expectations regarding the Fed funds rate and Treasury yields in a normal cycle?