Roberto Perli is the manager of the System Open Market Account (SOMA) and a senior leader in the New York Fed’s Market Group. In his role, Roberto is responsible for implementing monetary policy at the direction of the Federal Open Market Committee (FOMC). Roberto is also a returning guest to the podcast, and he rejoins Macro Musings to talk about a recent speech he made titled, *Balance Sheet Reduction: Progress to Date and a Look Ahead.* Specifically, David and Roberto discuss the Fed’s recent balance sheet activities, the basics and functionality of the overnight reverse repo facility, the importance of slowing down the Fed’s balance sheet runoff, and much more.

Transcript for this week’s episode.

Roberto’s NY Fed profile

Roberto’s Twitter: @R_Perli

David Beckworth’s Twitter: @DavidBeckworth

Follow us on Twitter: @Macro_Musings

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*Balance Sheet Reduction: Progress to Date and a Look Ahead* - Remarks by Roberto Perli at the 2024 Annual Primary Dealer Meeting, Federal Reserve Bank of New York

Timestamps:

(00:00:00) – Intro

(00:04:49) – Breaking Down the Role of SOMA Manager

(00:08:43) – Recapping the Fed’s Balance Sheet Activities

(00:11:04) – How to Think About Quantitative Tightening

(00:13:19) – Breaking Down the Overnight Reverse Repo Facility

(00:20:42) – Slowing Down the Runoff and the Future of QT

(00:26:48) – How to Determine the Critical Level of Reserves

(00:33:03) – The Structural Demand for Bank Reserves Over Time

(00:38:55) – The Advantages of the Floor Operating System

(00:47:49) – Reserve Supply Focus Moving Forward

(00:49:44) – Outro

Mary Daly is the president and CEO of the Federal Reserve Bank of San Francisco, a voting member of the Federal Open Market Committee (FOMC), and is also a 28-year veteran of the Federal Reserve System. President Daly joins David for this special live episode of Macro Musings to talk about her non-linear career path to the world of monetary policy, the long-term economic impacts of AI, the future outlook for Fed policy and the Fed’s framework, and much more.

Transcript for this week’s episode.

Mary’s Twitter: @MaryDalyEcon

Mary’s San Francisco Fed profile

David Beckworth’s Twitter: @DavidBeckworth

Follow us on Twitter: @Macro_Musings

Check out our new AI chatbot: the Macro Musebot!

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*Facts, Fears, and Functionality of NGDP Level Targeting* by David Beckworth

Timestamps:

(00:00:00) – Intro

(00:01:30) – Mary Daly’s Background

(00:06:09) – Recent Inflationary Trends and the Future of Fed Policy

(00:15:39) – The Trajectory of R-Star Over the Medium to Long-Run

(00:19:06) – The Long-Term Economic Impacts of AI

(00:29:51) – Expectations for the Upcoming Fed Framework Review

(00:33:35) – Prospects for Nominal GDP Targeting at the Fed

(00:36:58) – Fed Policymaking During an Election Year

(00:38:16) – Audience Q&A Period

(01:01:09) – Outro

Dan Katz and Stephen Miran are former senior advisors for the US Treasury Department and are currently adjunct fellows at the Manhattan Institute. Dan and Stephen have also written a new paper titled, *Reform the Federal Reserve’s Governance to Deliver Better Monetary Outcomes,* and they join Macro Musings to talk about this paper and the proposed reforms for the Federal Reserve outlined in it. Specifically, Dan, Steve, and David discuss the ever-expanding reach of the Fed, its role as debt manager and bank regulator, the current issue with the central bank’s personnel, and a lot more.

Transcript for this week’s episode.

Stephen’s Twitter: @SteveMiran

Stephen’s Manhattan Institute profile

Dan’s Twitter: @DanielScottKatz

Dan’s Manhattan Institute profile

David Beckworth’s Twitter: @DavidBeckworth

Follow us on Twitter: @Macro_Musings

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*Reform the Federal Reserve’s Governance to Deliver Better Monetary Outcomes* by Dan Katz and Stephen Miran

Timestamps:

(00:00:00) – Intro

(00:04:20) – The Fed’s Issue of Picking Winners and Losers

(00:09:17) – The Fed’s Role as Bank Regulator

(00:12:53) – The Ever-Expanding Reach of the Fed

(00:17:50) – The Fed as a Debt Manager

(00:23:33) – What Should the Fed Do in a Zero Lower Bound Environment

(00:27:26) – Personnel is Policy: The Issue with Fed Personnel

(00:29:55) – Options for Personnel Reform at the Fed

(00:38:22) – Making the Fed President Selection Process More Robust

(00:47:28) – The Nature of Debate at the Fed

(00:50:53) – The Scope for Change at the Fed

(00:53:21) – Outro

Richard Clarida is a professor of economics at Columbia University, a managing director at PIMCO, and was most recently the Vice Chair of the Federal Reserve Board of Governors. Richard rejoins David for this special bonus segment to talk about his interest in music and his first studio album, *Time No Changes.*

Richard’s Federal Reserve profile

Richard’s PIMCO archive

David Beckworth’s Twitter: @DavidBeckworth

Follow us on Twitter: @Macro_Musings

Check out our new AI chatbot: the Macro Musebot!

Join the new Macro Musings Discord server!

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*Time No Changes* by Richard Clarida

*Richard Clarida on FAIT, R-Star, and the Future of the Fed’s Framework* by Macro Musings

Richard Clarida is a well-known academic and policymaker who most recently was the Vice Chair of the Federal Reserve Board of Governors. Richard is currently a professor of economics at Columbia university and is also a managing director at PIMCO. Richard joins David on Macro Musings to talk about his academic and policy work, as well as his outlook for FAIT, the Fed’s framework review, the future of R-Star, and more.

Transcript for this week’s episode.

Richard’s Federal Reserve profile

Richard’s PIMCO archive

David Beckworth’s Twitter: @DavidBeckworth

Follow us on Twitter: @Macro_Musings

Check out our new AI chatbot: the Macro Musebot!

Join the new Macro Musings Discord server!

Join the Macro Musings mailing list!

Check out our Macro Musings merch!

Related Links:

*How the Bundesbank Conducts Monetary Policy* by Richard Clarida and Mark Gertler

*The Science of Monetary Policy: A New Keynesian Perspective* by Richard Clarida, Jordi Gali, and Mark Gertler

*Monetary Policy Rules and Macroeconomic Stability: Evidence and Some Theory* by Richard Clarida, Jordi Gali, and Mark Gertler

*Monetary Policy Rules in Practice: Some International Evidence* by Richard Clarida, Jordi Gali, and Mark Gertler

Timestamps:

(00:00:00) – Intro

(00:03:04) – Richard Clarida’s Background

(00:11:37) – Bridging the Gap Between Academic Economics and Real-World Markets

(00:21:50) – Richard’s Journey Through the Policy World

(00:36:29) – Constructing the Fed’s FAIT Framework

(00:40:53) – Evaluating the Results of the FAIT Framework

(00:54:17) – The Future of the Fed’s Framework

(00:57:08) – The Future of R-Star

(01:00:50) – Outro

Saleha Mohsin is a senior Washington correspondent for Bloomberg News, where she covers policy, politics, and power in Washington, DC. Saleha is also the author of a new book titled, *Paper Soldiers: How the Weaponization of the Dollar Changed the World Order,* and she joins David on Macro Musings to talk about it. Specifically, David and Saleha also discuss the intelligence and enforcement tools of the US Treasury, the basics and importance of SWIFT, the effectiveness of US sanctions, and a lot more.

Transcript for this week’s episode.

Saleha’s Twitter: @SalehaMohsin

Saleha’s Bloomberg archive

David Beckworth’s Twitter: @DavidBeckworth

Follow us on Twitter: @Macro_Musings

Check out our new AI chatbot: the Macro Musebot!

Join the new Macro Musings Discord server!

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Related Links:

*Paper Soldiers: How the Weaponization of the Dollar Changed the World Order* by Saleha Mohsin

*The Big Take* hosted by Saleha Mohsin

Timestamps:

(00:00:00) – Intro

(00:03:43) – The Weaponization of the Dollar on the Global Stage

(00:08:55) – The Intelligence and Enforcement Tools of the US Treasury Department

(00:13:10) – Breaking Down SWIFT and Its Importance

(00:18:27) – Sanctioning Russian Oligarchs

(00:22:42) – The Importance and Significance of Robert Rubin

(00:25:29) – The George W. Bush of the Treasury Department

(00:37:42) – Breaking Down the Joint Comprehensive Plan of Action

(00:41:06) – The Trump Administration, China, and the Rise of Populism

(00:45:30) – Evaluating the Effectiveness of the Russia Sanctions

(00:51:18) – Threats to the US in the Future

(00:52:48) – Outro

Josh Hendrickson is the chair of the department of economics at the University of Mississippi and is the author of a new paper that looks at dollar dominance through the broad historical perspective of what is called the “Treasury Standard.” Josh is also a returning guest to Macro Musings, and he rejoins the podcast to talk about this paper and the Treasury Standard concept. David and Josh also discuss the state’s monopoly over money, the path to global dollar dominance, the path dependency of the dollar system, and a lot more.

Transcript for this week’s episode.

Josh’s Twitter: @RebelEconProf

Josh’s Ole Miss profile

Josh’s joint Substack

David Beckworth’s Twitter: @DavidBeckworth

Follow us on Twitter: @Macro_Musings

Join the Macro Musings mailing list!

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Related Links:

*The Treasury Standard: Causes and Consequences* by Joshua Hendrickson

*If Things Are So Great, Why Don’t People Think So?* by Josh Hendrickson

*The Cost of Money is Part of the Cost of Living: New Evidence on the Consumer Sentiment Anomaly* by Marijn Bolhuis, Judd Cramer, Karl Schulz, and Lawrence Summers

*On a Correct Measure of Inflation* by Armen Alchian and Benjamin Klein

Julia Coronado is the president and founder of MacroPolicy Perspectives, a Wall Street research firm. Julia was also recently the president of the National Association of Business Economists, and she has served as an economist on Wall Street and at the Federal Reserve Board of Governors. Julia is also a returning guest to Macro Musings, and she rejoins the podcast to talk about the prospects of a productivity surge, the Fed’s journey to a soft landing, the state of the commercial real estate market, and more.

Transcript for this week’s episode.

Julia’s Twitter: @jc_econ

Julia’s MacroPolicy Perspectives profile

David Beckworth’s Twitter: @DavidBeckworth

Follow us on Twitter: @Macro_Musings

Join the Macro Musings mailing list!

Check out our Macro Musings merch!