The persuasive power of a Committee Chairman: Arthur Burns and the FOMC

Henry Chappell, Rob McGregor and Todd Vermilyea

Public Choice, 2007, vol. 132, issue 1, 103-112

Abstract: This paper investigates persuasion as a means of influence for the Federal Reserve Chairman in meetings of the Federal Open Market Committee (FOMC). Using textual records of FOMC meetings, federal funds rate targets have been recorded for Committee members who served in the Arthur Burns era (1970–1978). Results show that Burns-member differences in stated funds rate targets were lower when Burns made recommendations early in the meeting, consistent with the hypothesis that the Chairman is persuasive. Additional results show that members’ tendencies to respond to Burns's recommendations were related to their personal and political loyalties. Copyright Springer Science+Business Media, LLC 2007

Keywords: Federal Open Market Committee; FOMC; Monetary policy; Federal Reserve (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (15)

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DOI: 10.1007/s11127-006-9136-7

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