WASHINGTON — “Jeremy C. Stein, a member of the Federal Reserve’s board who has raised concerns about its stimulus campaign, will resign at the end of May and return to his previous role at Harvard.”
“Mr. Stein, who joined the Fed in 2012, needed to return within two years to preserve his tenured professorship.”
“During my time here, the economy has moved steadily back in the direction of full employment, and a number of important steps have been taken to make the financial system stronger and more resilient,” Mr. Stein wrote in a letter informing President Obama of his resignation, which was released by the Fed. He added, “There is undoubtedly more work to be done on both dimensions.”
“Mr. Stein, an economist and noted academic, has helped to provide an intellectual rationale for the cautious evolution of the Fed’s stimulus campaign, which has not succeeded in returning either unemployment or inflation to normal levels.”
“He has argued that the Fed should temper its efforts to minimize unemployment because those policies encourage financial risk-taking, which can undermine long-term growth by destabilizing markets and causing new crises.”
Read full New York Times article here.