Video: Donald Kohn explains the Federal Reserve’s role in the economic recovery

Vice Chairman of the Federal Reserve Donald Kohn and other economic heavyweights came together to talk about the current financial crisis at the Vanderbilt Owen Graduate School of Management on April 18 for the 22nd annual Financial Markets Research Center Conference.

Kohn said that the federal government’s heavy financial bailout of banks and other businesses will help the stock market and is “necessary, safe and effective and will not lead to adverse aftereffects.” Kohn also talked about the impact of the central bank’s emergency lending programs on taxpayers, credit market capital allocation, the stress tests of U.S. banks and the outlook for the U.S. economy.

Kohn and President Obama’s senior economic advisor Paul Volcker had a lively back-and-forth during the question and answer portion of Kohn’s speech at Owen when Volcker “grilled” Kohn over statements he made about a 2 percent inflation rate being appropriate for the economy in the long term. You can watch the exchange and Kohn’s full speech by clicking here.

Dozens of current and former members of the Federal Reserve, along with other economic and political leaders came to Owen to honor Owen professor and former governor of the Federal Reserve Board Dewey Daane for his 90th birthday. Many of the economic leaders have lectured in Daane’s seminar on monetary and fiscal policy. The Seminar has been in continuous operation since Daane joined the Owen faculty in 1974, after retiring as governor of the Federal Reserve Board.

News stories on the comments Kohn made at Vanderbilt can be seen in the Wall Street Journal, Reuters, Bloomberg, Forbes, the Tennessean and other publications.

Contact: Amy Wolf (615) 322-NEWS
amy.wolf@vanderbilt.edu

Explore Story Topics