At around $900 billion in transactions daily, the market for U.S. Treasuries is massive, not only in terms of quantity but also in terms of importance to the U.S. and global economies. The Treasury market is tied to interest rates, the value of the dollar, and financial markets around the world. So when shocks hit the Treasury market, as they did during the COVID-19 crisis, the ripple effects can be global. In a new paper, “Treasury market dysfunction and the role of the central bank,” Anil K Kashyap, Jeremy C. Stein, Jonathan L. Wallen, and Joshua Younger explore how the Federal Reserve reacted to the 2020 Treasury disturbance and present a proposal for future action. On this episode of the Brookings Podcast on Economic Activity, Senior Fellow David Wessel is joined by Kashyap to discuss the findings as well as the relevance to recent Treasury market volatility.

Show notes and transcript

The Brookings Podcast on Economic Activity is part of the Brookings Podcast Network. Subscribe and listen on Apple, Spotify, or wherever you listen to podcasts. Send feedback email to podcasts@brookings.edu.

The U.S. trade deficit has long been a source of political consternation, but it has come to the forefront in recent weeks. Just a few months into Donald Trump’s second term, he has made the trade deficit a key target of his aggressive tariff policies. On the day that President Trump announced a new, sweeping round of tariffs on all U.S. trade partners, Brookings Senior Fellow Gian Maria Milesi-Ferretti was joined by Maurice Obstfeld of the Peterson Institute for International Economics to discuss Obstfeld’s new paper, “The U.S. Trade Deficit: Myths and Realities.” On this episode of the Brookings Podcast on Economic Activity, Miles-Ferretti and Obstfeld explore the causes and consequences of the U.S. trade deficit, the role of China and other foreign nations, and broader implications for the American economy.

Show notes and transcript

The Brookings Podcast on Economic Activity is part of the Brookings Podcast Network. Subscribe and listen on Apple, Spotify, or wherever you listen to podcasts. Send feedback email to podcasts@brookings.edu.

The Federal Reserve’s “Statement on Longer-Run Goals and Monetary Policy Strategy”—commonly referred to as its monetary policy framework—is composed of guiding principles the central bank uses in setting and communicating policy. Since the Fed last updated this framework in 2020, the global economy has faced unique challenges: COVID-19 shutdowns, widespread supply chain issues, and multiple global wars. In 2025, the Fed Board will be tasked with reviewing the framework, identifying what has worked well and what hasn’t, and updating it accordingly. On this episode of the Brookings Podcast on Economic Activity, David Wessel sits down with Brian Sack and Christina Romer, both former policymakers and authors of new research on the Fed framework's successes and shortfalls.

Show notes and transcript

The Brookings Podcast on Economic Activity is part of the Brookings Podcast Network. Subscribe and listen on Apple, Spotify, or wherever you listen to podcasts. Send feedback email to podcasts@brookings.edu.