Martin Feldstein Interview on the Economy, Fed
August 27, 2012
Interviewed: Martin Feldstein, member of the Belfer Center Board of Directors
Topic: Economy, Fed
Bloomberg host: “Martin, you’re one of the more interested observers here. You’ve been watching this for years. We’ve broken down almost into two camps, the Fed do something camp and the Fed shouldn’t do something camp. Which one would you put yourself in?
Martin Feldstein: “I’m in the Fed shouldn’t do something camp. The economy is very weak. There’s no question about that. But I think the Fed really is not in a position to change things. Interest rates are super low. Even if they could lower long rates by another 10 basis points, that’s not going to change the housing market or business investment.”