I am really disappointed in Janet Yellen

I wrote the following on my Facebook back in April.

"I am really disappointed in Janet Yellen. With the so-called personal touch, she just put the Fed chair among the ranks of politicians. Why do we need theories? Why do we need empirical understanding of theories? Because we are doing science. Because we are not in the profession of story-telling. You cite three people in your story. I can easily find another three who are just the opposite. How is that a policy debate?"

She is doing this again. Read this speech by her.

I knew she is wrong in "having personal touch", but did not realize how political she actually is. In class, I told students about the tension between the Fed's two mandates: economic growth and price stability. I mentioned that the new mandate-financial system stability just added more tension to the central banker's work. It is just getting harder and harder to do central banking. But our central banker does not think so. Yellen simply wants more mandates. She wants to "promote asset-building." OK, it is hard to juggle two balls. Let's see if we can do better with four.

Prof. Cochrane says the best, "I wish for the day I hear any Fed official say 'here is a terrible problem, and I think our Federal Government should do something about it, but it's not the Fed's job.'"