FOMC Transcripts Or Why It’s Important to Listen to the Staff

From the 2007 US Federal Reserve meeting transcripts, Meeting of the Federal Open Market Committee (FOMC) on September 18, 2007, economist Karen Johnson during a discussion of the Northern Rock debacle –

MS. JOHNSON. But, I have to say—as when President Fisher asked that question about
whether we know what we don’t know, to which, of course, the answer is always “no”—
[laughter] five days ago, I wouldn’t have brought up Northern Rock. So, I can’t promise you
that there aren’t—
MR. FISHER. Previously Newcastle, should have been called Sandcastle. [Laughter]
MS. JOHNSON. The Spanish banks, for example, and the Spanish mortgage market are places, if I were going to dig deeper and look for hidden problems, that are a possibility.

That’s a viewpoint that had trouble gaining traction among senior Spanish officials for another 3 years.

2 thoughts on “FOMC Transcripts Or Why It’s Important to Listen to the Staff

  1. Pingback: FOMC Transcripts Or Why It’s Important to Listen to the Staff | A Fistful Of Euros | fifthestate.co | Scoop.it

  2. Pingback: Saturday Snippets » Duck of Minerva

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>