The US Federal Reserve’s pitched battle with rising prices has given rise to widespread concerns about a possible return of stagflation — the combination of high unemployment and high inflation that afflicted the US in the 1970s.
The collapse of Sarah Bloom Raskin’s candidacy to head banking supervision at the Federal Reserve represents a major setback for financial policy in the U.S. Given how important the position is for the country’s financial stability, and given how politicized the effort to fill it has become, I see one way forward: Depoliticize the process by nominating a longtime Fed staffer.
