Shortly after the Federal Reserve announced the adoption of the “Evans Rule,” economists and investors took to Twitter to share their feelings on this dovish turn in policy.
Ezra Klein put the announcement in perspective:
Whoa. I went to lunch for an hour and the country’s entire monetary policy changed while I was gone.
— Ezra Klein (@ezraklein) December 12, 2012
The move drew support on both sides of the political aisle, from Bloomberg’s Josh Barro to Slate’s Matt Yglesias, who outlined the initial market reaction to the Fed’s announcement:
Very pleased about the Bernanke Rule. There’s only one GOP monetary dove in government, but he’s the one who counts.
— Josh Barro (@jbarro) December 12, 2012
Dollar falling, while gold, oil, and S&P 500 rise. Expectations seem to be moving as expected.
— Matt Yglesias (@mattyglesias) December 12, 2012
There were also those like Austan Goolsbee who thought the Fed could have done more:
I still think an Evans rule w/less of a cliff would be better like infl 2.5=yellow/start debate, 3.5=red/certainly raise etc. @mattyglesias
— Austan Goolsbee (@Austan_Goolsbee) December 12, 2012
But the move was not without its critics, like Doug Kass and Zero Hedge:
It appears Bernanke does not understand what it means to be accountable to your voters
— zerohedge (@zerohedge) December 12, 2012
the Fed is making a big mistake going to economic targeting esp. regarding the jobless rate which is fraught with statistical problems
— Douglas Kass (@DougKass) December 12, 2012
Quantitative Easing is a drug, Our nation is an addict. You feel better when you do it, but your health declines, + you can never stop.
— Stephen Guilfoyle (@Sarge986) December 12, 2012
The real debt cliff is here.Bonds indicating that monetary policy has gone too far.
— Yves Lamoureux(@YvesLamoureux) December 12, 2012
Some saw the Fed’s action as a necessary evil:
As much as I philosophically disagree with central bank QE programs, the pragmatist in me can see a silver lining in it…
— Jesse Colombo(@TheBubbleBubble) December 12, 2012
While Binyamin Appelbaum had a riddle for Jack Welch:
If the White House controls UE, and UE controls monetary policy, is the Fed still independent? cc: Jack Welch
— Binyamin Appelbaum (@BCAppelbaum) December 12, 2012
And here’s a not-so-shocking reminder of how long the Fed’s been at this:
I have covered the Fed for almost 6 years and not once written about a policy tightening.
— Neil Irwin (@Neil_Irwin) December 12, 2012