Former Fed Member Jealous of ECB Mandate

Being a U.S. Federal Reserve governor is an impressive job, but sometimes you might wish for another, simpler, task—like working for the European Central Bank (ECB).

At least to Charles Plosser, the former president of the Philadelphia Fed, it’s that single mandate that’s attractive. While the U.S. central bank must aim to achieve both maximum employment and stable prices, its euro zone counterpart need only worry about the latter.

“I am jealous of the ECB’s mandate,” Plosser told CNBC on Monday. “I would rather see the U.S. have a more narrow mandate that looked like the ECB’s mandate, actually. I think that would make the task easier and make monetary policy more effective doing what monetary policy is actually capable of doing, which is achieving price stability.”

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza