In a new podcast episode, a Nobel laureate examines the future of Federal Reserve leadership and independence—and how to address future financial crises.
From setting interest rates to keeping inflation in check, the Federal Reserve sits at the center of some of the most important economic decisions shaping our daily lives.
As the Fed prepares for new leadership, as Kevin Warsh prepares to follow the tenure of Jerome Powell, many are wondering: What’s next for the Fed, especially when it comes to their financial decisions and their independence?
Professor Douglas Diamond is a Nobel Prize-winning economist of the University of Chicago. One of the founders of modern banking theory, Diamond has conducted groundbreaking research on banking, particularly during financial crises.
In this episode of Big Brains, Diamond describes the lessons we can learn from past bank runs, including the 2023 collapse of Silicon Valley Bank, and warns that the Fed must remain on guard to help prevent the next financial crisis from happening:
Source: University of Chicago
