The benefits of independent monetary policymaking in an uncertain world

About the Lecture

This lecture will focus on the benefits of setting monetary policy independent of short-run political consideration, looking closely at the Federal Reserve System. Loretta will provide some background on the structure of the Federal Reserve System, and the rationale for why it was designed this way. She will then discuss what is meant by independent monetary policy, and what the benefits are for businesses and households. Loretta will emphasise the importance of these points in light of the considerable uncertainty about the economic outlook.

About the presenter

Loretta J. Mester

Loretta was President and Chief Executive Officer of the Federal Reserve Bank of Cleveland from June 2014 to June 2024. In this role, she participated in the formulation of U.S. monetary policy, and oversaw more than 1,000 employees based at the bank’s Cleveland office. She also oversaw the branch offices in Cincinnati and Pittsburgh, which conduct economic research, supervise banking institutions, promote community development, and provide payment services to depository institutions and the U.S. Treasury. Loretta was the 11th President of the Cleveland Fed and represented the Fourth District on the Federal Open Market Committee (FOMC).

Loretta is an Adjunct Professor of Finance at the Wharton School of the University of Pennsylvania and a Senior Fellow with the Wharton Initiative on Financial Policy and Regulation. She has also taught in the undergraduate finance and MBA programs at Wharton and in the PhD program in Finance at New York University.

View Loretta’s full bio and CV here.