William White participated in a panel, organized by the American Enterprise Institute, that also included Don Kohn and Kevin Warsh (both ex Fed) and Desmond Lachman of the AEI. White expressed concern about a plausible future combination of negative supply shocks and a strong need for increased investment. These two could only be combined, without more inflation, if consumption could be reduced to free up resources. Fiscal restraint, especially higher taxes, seemed a better instrument for reducing consumption than monetary restraint, especially given the current fragility of the financial system. However, in the current political climate, tax increases seem unlikely.
White’s speaking notes and the video can be found below.
AEIPanelOctober2022FedsBigInflationFighthttps://www.aei.org/events/the-federal-reserves-big-inflation-fight/