Change comes slowly, then quickly
It's funny how a sea change can take shape. For years, Minneapolis Fed President Narayana Kocherlakota was a lonely voice for radically changing the FOMC. He was roundly ignored.
But after another year of disappointing growth and poor Fed forecasting, suddenly there's an appetite for change.
Reuters writes today that the Fed is "under increasing pressure to reform."
The focus of the story is on racial and gender diversity but that's symptomatic of a Fed that's suddenly vulnerable on all sides because of its inability to deliver on promises and its mandate. For years the Fed brushed aside income inequality in favor of trickle-down policies and its actions still reflect a central bank that believes commercial banks are the conduit for everything.
But the conversation has certainly shifted and where policy ends up will depend on who can exert the most pressure in the months and years ahead.
The only color in the room is in the table and chairs
