Skip to main content

Newsroom

April 4, 2014

Fed Governor Stein Resigns to Return to Teaching at Harvard

“Federal Reserve Governor Jeremy Stein, a thought leader on the linkage between monetary policy and financial stability, resigned from his post to return to teaching economics at Harvard University.”

“Stein, 53, will leave May 28 after two years as a governor, according to a statement by the Fed today in Washington. His return to Harvard, which doesn’t extend leaves beyond two years, creates a vacancy for his term ending Jan. 31, 2018.”

“Stein departs amid growing concern among policy makers that more than five years of near-zero interest rates and trillions of dollars in bond purchases may give rise to financial instability.”

“He had the intellectual heft to speak with authority on financial-market issues and macroeconomic issues, highlighting the potential risks” from quantitative easing, said Antulio Bomfim, senior managing director at Macroeconomic Advisers LLC in Washington. “He was a very influential guy. It is a loss for the Federal Open Market Committee and the Board.”

“Bomfim added that Stein’s resignation wasn’t surprising given Harvard’s restrictions on leave.”

“In speeches, Stein described an approach to financial bubbles that included raising interest rates, breaking with colleagues who said supervisory tools should be the first line of defense. While former Chairman Ben S. Bernanke elevated financial-stability concerns, the Fed’s strategy on how and when to manage excess in markets remains unfinished.”

***

Read full Bloomberg article here.

In the News
Share

MEDIA REQUESTS

For media inquiries, please contact us at
press@bettermarkets.org or 202-618-6433.

Contact Us

For media inquiries, please contact press@bettermarkets.org or 202-618-6433.

To sign up for our email newsletter, please visit this page.

Name(Required)
This field is for validation purposes and should be left unchanged.

Sign Up — Stay Informed With Our Monthly Newsletter

This field is for validation purposes and should be left unchanged.

For media inquiries,

please contact press@bettermarkets.org or 202-618-6433.

Donate

Help us fight for the public interest in our financial markets, protecting Main Street from Wall Street and avoiding another costly financial collapse and economic crisis, by making a donation today.

Donate Today