Fed Presidents Debate Policy at VCU Event

By Cassie Williams Jones

In a rare joint appearance, two Federal Reserve presidents with starkly different opinions discussed monetary policy this week at the 2013 Virginia Commonwealth University’s School of Business’ Investors Circle Dinner.

Charles Evans, Ph.D., president of the Federal Reserve Bank of Chicago, and Jeffrey Lacker, Ph.D., president of the Federal Reserve Bank of Richmond, discussed their ideas on inflation and unemployment rates in front of a group of more than 300 people at the Jefferson Hotel in Richmond. Known for their often contrasting views, the two openly discussed their viewpoints and projections for the coming years in a forum unusual for Federal Reserve presidents.

“Monetary Policy: Opportunities and Limits,” moderated by Al Broaddus, Ph.D., former president of the Federal Reserve Bank of Richmond, was presented with dinner by the VCU School of Business Foundation to members of its Investors Circle, established in 1996 to recognize lead donors who generously support the VCU School of Business.

During the debate, Evans detailed his optimism that the United States economy will not stall in the second half. He projects 2.5-percent growth in 2013, and 3.5-percent growth by the end of 2014.

“It is my expectation that this forecast is the most likely event,” Evans said.

A more cautionary Lacker expressed worries that the Fed has overestimated the progress of the recovery from the recession, and that its efforts thus far have not significantly improved the economy.

“I don’t see the power of monetary policy on the real side as strongly as Charles does,” he said.

Evans took office as the ninth president and chief executive officer of the Seventh District Federal Reserve Bank in Chicago in 2007. Before becoming president, he was director of research and a senior vice president at the Chicago Fed. Prior to that, he was a vice president and senior economist in the economic research department.

Lacker took office in 2004 as the seventh chief executive and president of the Fifth District Federal Reserve Bank in Richmond. He joined the bank in 1989 as an economist in the banking area of the research department. He was named research officer in 1994, vice president in 1996 and senior vice president and director of the research department in 1999.

Both Evans and Lacker are members of the Federal Open Market Committee, the committee within the Federal Reserve System that oversees open market operations of the United States.

This event is a highlight of the School of Business’ yearlong 75^th anniversary celebration, honoring 75 years of educating business-ready leaders and serving the regional business community.

"I would like to thank the VCU School of Business Foundation Board of Trustees and all of our Investors Circle members for making this event truly phenomenal,” said Ed Grier, dean of the VCU School of Business. “This event put the VCU School of Business on the world stage evident by the presence of several international media outlets, including the Richmond Times Dispatch, Reuters, the Washington Post, the Wall Street Journal, the New York Times and Bloomberg."



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