Plosser: Fed Overreacted in Their Dovish Signals

The transcript discusses the Fed's recent dovish pivot and its potential for policy mistakes, emphasizing the importance of not overreacting to short-term events. It highlights the relevance of real business cycles theory and critiques the overreliance on central banks to solve economic issues. The discussion also covers market signals, the Fed's response, and the implications of modern monetary theory. Finally, it examines the ECB's actions and the mixed effects of negative interest rates on the economy.

What are the potential dangers of the Fed's dovish pivot according to the speaker?

How does the speaker view the relationship between central banks and short-term events?

What is the speaker's perspective on the relevance of real business cycles in today's economy?

What concerns does the speaker express regarding the faith placed in central banks to solve economic challenges?

How does the speaker characterize modern monetary theory?

What advice does the speaker give regarding the preparation for future economic downturns?

What does the speaker suggest about the effectiveness of negative interest rates?