The Fed: Be More ‘Real World’ and Not Live In a ‘Theoretical Bubble.’ Here’s How.
Posted on LinkedIn  and  X (Twitter)     By: David S. Levine, MBA       Whether or not the Federal Reserve Bank (the Fed) responds to President Trump’s loud urging to lower interest rates, they have not lowered interest rates since December 2024, even though the U.S. economy has been getting stronger. This has resulted in higher mortgage rates which have negatively affected both home buyers and sellers. Additionally,   as “ Treasury Secretary Bessent calls for a review of ‘the entire’ Federal Reserve ” (CNBC, July 21, 2025), it might really be a good time for a fundamental change in the Fed so it can achieve its mission to be beneficial for all the American people.     The Federal Reserve Bank’s website explains that they currently employ just under 24,000 people, of which 400-450 are professional economists. Research is primarily conducted by this staff of professional economists to analyze economic data, model macroeconomic conditions, forecast inflation and e...