David Beckworth

Paul Kupiec on Problems with the Fed’s Balance Sheet and Calls to End Interest on Reserves Paul Kupiec is a senior fellow at the American Enterprise Institute.

Full show and text: www.mercatus.org/macro-musing... (2/2)

YouTube video by David Beckworth Paul Tupiec on the allocation of the Fed's SOMA portfolio across the Fed banks.

🎙️Think you know Fed's balance sheet issues? Wait to you hear the Paul Kupiec show!🎙️
-Fed losses not shared by all Fed banks. Some still profitable!
-Fed can require private member banks to help recapitalize Fed's BS.
-The SOMA portfolio gets allocated across Fed banks.
youtu.be/Cxbx-mLF8bQ (1/2)

The Consolidated Government Budget Constraint Does Not Care About Your Fed Independence Feelings Missing the Fiscal Forest for the Trump Trees

My latest newsletter: macroeconomicpolicynexus.substack.com/p/the-consol...

Drifting Toward Fiscal Dominance Why America's mounting debt, political rhetoric, and quiet regulatory shifts suggest we are on a journey to fiscal dominance.

Latest newsletter on the drift to fiscal dominance in the United States. macroeconomicpolicynexus.substack.com/p/drifting-t...

You need to get back on Twitter and share this information there!

Retail investors in private credit Private credit is poised for wider participation from retail investors through the rapid growth of business development companies and, more recently, private credit exchange-traded funds (ETFs). ETFs ...

New BIS Bulletin out!
“Retail investors in private credit”, with S Doerr & K Todorov, taking stock of the push pf PC towards retail, with a focus on BDCs & ETFs, & drawing implications

www.bis.org/publ/bisbull...

Thanks for reading. The Bill Nelson article I linke to tells more of a cultural story--bank supervisors and bankers themselves--get use to higher levels and increase their structural demand for reserves. The other Rajan et al paper tells the liquidity story.

Rising from the Floor to the Ceiling Ted Cruz's excellent adventure in Fed Plumbing

Sen Ted Cruz has brought Fed plumbing into the spotlight. His plan to end IORB won’t save $1T, but it does raise the right question: why is the Fed so central to our financial system? I argue a demand-driven ceiling system brings better balance.
macroeconomicpolicynexus.substack.com/p/rising-fro...

Mark Blyth on the Winners and Losers from Inflation Mark Blyth is a professor of international economics at Brown University.

Here is the full show and transcript www.mercatus.org/macro-musing... (2/2)

YouTube video by David Beckworth The Music Man Who Loves Economics

Delighted to have @markblyth.bsky.social
join me to discuss his new book, 𝑰𝒏𝒇𝒍𝒂𝒕𝒊𝒐𝒏: 𝒂 𝑮𝒖𝒊𝒅𝒆 𝒇𝒐𝒓 𝑳𝒐𝒔𝒆𝒓𝒔 𝒂𝒏𝒅 𝑼𝒔𝒆𝒓𝒔. We had a great conversation on the political economy of inflation. We also had some fun discussing Mark's other hobby: music. (1/2) youtu.be/SX2AEXCRtsc?...

Is the Fate of FAIT Sealed? Yes. But the spirit of makeup policy endures.

open.substack.com/pub/macroeco...

Powerlifting through Hysteresis On strength lost, strength regained, and the scars that shape an economy.

What do powerlifting and economic hysteresis have in common? My latest newsletter explores this connection, building on @petercontibrown.bsky.social Conti-Brown's powerlifting journey and @lucafornaro.bsky.social's hysteresis research. macroeconomicpolicynexus.substack.com/p/let-it-fai...

YouTube video by David Beckworth Are Fed Governors now safe from POTUS dismissal power?

And here we are discussing the recent Supreme Court case on the POTUS and Fed Governors: (3/n) youtu.be/Ms1y_Hqb8hE?...

Here is a behind-the-scenes extra where we had some fun with one of Peter's other passions in life: (2/n)

Peter Conti-Brown and Sean Vanatta on the History of Bank Supervision in America Peter Conti-Brown is a historian and legal scholar of the Federal Reserve System, and an associate professor at the

Super fun show this week with @seanvanatta.bsky.social and @petercontibrown.bsky.social on their new history of bank supervision in the United States. We also cover the recent SCOTUS case on POTUS removing Fed governors, powerlifting, and more! www.mercatus.org/macro-musing... (1/n)

What is the Biggest Threat to Fed Independence? It’s not political attacks, mission creep, or operating losses. It’s the threat of fiscal dominance.

macroeconomicpolicynexus.substack.com/p/what-is-th...

Great discussion of when monetary dominance turns into fiscal dominance by @davidbeckworth.bsky.social

Aaaand new paper is out!
“Stablecoins and safe asset prices” with the awesome @rashad-ahmed.bsky.social
Quantifying the effects pf stablecoin flows on Tsy yields with instrumented linear projections, documenting asymmetric effects of inflows vs outflows
www.bis.org/publ/work127...

From Floors to Flexibility A Conversation on the Rise of Demand-Driven Central Bank Operating Systems

My introductory remarks on the panel discussion about the future of central bank operating systems at the @AtlantaFed's Financial Markets Conference
open.substack.com/pub/macroeco...

From Floors to Flexibility A Conversation on the Rise of Demand-Driven Central Bank Operating Systems

My introductory remarks on the panel discussion about the future of central bank operating systems at the @AtlantaFed's Financial Markets Conference
open.substack.com/pub/macroeco...

Bill Nelson on the Future of Central Bank Operating Systems Bill Nelson is a Chief economist and an executive vice president at the Bank Policy Institute.

Just realized that something similar was discussed in this Macro musing episode ( @davidbeckworth.bsky.social ) with Bill Nelson, in which they actually called it "demand-driven ceiling system~ clever 😀

www.mercatus.org/macro-musing...

Skanda Amarnath on the Future of the Federal Reserve and it’s Framework Skanda Amarnath is the executive director of Employ America.

On Macro Musings with @davidbeckworth.bsky.social, ESB expert @skandaamarnath.bsky.social explores the Federal Reserve's decision-making framework—and how it could improve, making the case for targeting nominal income and spending, not just inflation.

🎙️ Listen: www.mercatus.org/macro-musing...

Ran into my favorite @ecb.europa.eu official at the Hoover monetary policy conference! @isabelschnabel.bsky.social

Where are the endpoints of QT? Ample Reserve System vs Demand-driven Floor System | EconReporter May 6, 2025 (EconReporter) — Quantitative tightening (QT)—a process central banks use to reverse years of liquidity creation from quantitative easing (QE)—is concluding in many advanced economies. The...

This article is my vague attempt to say that ECB & BoE's demand-driven floor system is actually a much better framing to the Fed's "ample" reserve

Skanda Amarnath on the Future of the Federal Reserve and it’s Framework Skanda Amarnath is the executive director of Employ America.

And here is my podcast with @skandaamarnath.bsky.social www.mercatus.org/macro-musing...

A Two-for-One Targeting Deal? Getting a Robust Inflation Target by Stabilizing Nominal Income Growth

My latest newsletter, motivated by my discussion with @skandaamarnath.bsky.social on the podcast, looks at how the FOMC can firm up its inflation target by anchoring it to a stable nominal income growth path. macroeconomicpolicynexus.substack.com/p/a-two-for-...

Very interesting. The Fed famously has legions of economists at its disposal, maybe too many, and certainly more than just about all other central banks make do with. But the governance issues (hierarchy, limited accountability) are probably more serious.

Is the Federal Reserve Overstaffed or Overworked? Insights from the Fed’s Financial Statements Abstract This policy brief compares the operating expenses of the Federal Reserve with other large federal agencies. Inflation-adjusted salaries of Fed employees increased 67 percent from 2007 to 2024...

Here is his policy brief: www.mercatus.org/research/pol...

YouTube video by David Beckworth Andy Levin Compares Fed Accountability

Here is a video clip from the show: youtu.be/rlkFDZmZ-h8?...

Andy Levin on Holding the Fed Accountable Andy Levin is a professor of economics at Dartmouth College and longtime advisor to many central banks.

New podcast this week with Andy Levin on his new policy brief and its call for an independent IG at the Fed: www.mercatus.org/macro-musing...

A Safe Harbor for the Fed Shielding the Fed from Politics and Uncertainty

The Fed is caught between political pressure and economic uncertainty. But there’s a simple idea—a safe harbor—that could help in this very moment to preserve the Fed's independence. What is it? See my latest newsletter for the answer! macroeconomicpolicynexus.substack.com/p/a-safe-har...