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Former Dallas Fed president: Federal spending kept U.S. out of a recession, but at a cost

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Former Dallas Fed president: Federal spending kept U.S. out of a recession, but at a cost


Throughout Texas and across the nation, the results of trillions of dollars in federal spending since the pandemic began are visible in new battery plants and infrastructure.

The nation would be in a recession right now without the American Rescue Plan, the Infrastructure Investment and Jobs Act, the Inflation Reduction Act and the resulting multibillion-dollar projects that stimulated the economy, says Rob Kaplan, former president and CEO of the Federal Reserve Bank of Dallas.

“After COVID wasn’t totally over, but was pretty much over, we passed about $4 trillion of more spending, and the Fed kept printing money and keeping rates of zero,” said Kaplan in remarks last week at a Greater Dallas Planning Council event. “We were worried we were overheating the economy.”

The cost, Kaplan said, is an artificially stimulated economy that caused the Federal Reserve to continue to raise interest rates.

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Fed’s Jerome Powell says inflation fight isn’t over and could require more rate hikes

“You’ve got fiscal policy, to some extent, blunting monetary policy,” he said. “These spending projects are the kind you would normally do after a recession. We’re doing it before we have a recession, but it is clearly, I think, keeping us out of a recession.”

Kaplan retired in 2021 after financial disclosures showed he was trading stocks while voting on critical monetary policy for the U.S. during the pandemic. His successor, Lorie Logan, is a voting member this year of the Fed’s rate-setting committee.

The Fed may not need to raise rates further, Kaplan said, but if it does, it’s because the fiscal spending is continuing to stimulate the economy.

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“I think this stimulation is somewhat artificial,” he said. “If I were at the Fed, I’d say, listen, I don’t want to respond to an artificial or temporary spending stimulus, because I think the organic growth of the economy is weakening. That’s going to be the debate this fall.”

He predicts the Fed will implement one or two more interest-rate increases, if any. He hopes as inflation continues to settle, the Fed will start cutting rates later next year.

D-FW inflation cools in July with drop in meat, egg prices but produce still rising

“I don’t remember a time in our lives where you had monetary policy this restrictive and fiscal policy this aggressive on the other side,” he said. “There’s no textbook for how these two things offset. That’s why you hear chair (Jerome) Powell say we’re navigating under cloudy skies. I don’t think they know either.”

Despite the uncertain economic picture, Kaplan praised Texas for its strong migration and workforce growth compared to the rest of the U.S.

“If we can improve educational attainment, keep investing in infrastructure, we’re going to outperform the country,” he said. “There’s probably not a better hand to play in the United States than Dallas specifically and Texas generally.”

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Dallas’ West Village nabs Trina Turk as it adds fashion retailers along McKinney Ave

About 10,000 people with an average household income of almost $160k live within a 10-minute walk of West Village. One of Dallas’ walkable neighborhoods is bringing new shops into its mix.

Walgreens CEO Rosalind Brewer steps aside after three years at the drug store chain

Walgreens over the past several years has shifted its focus from providing medicines to get people through illnesses to helping its customers avoid them. That has included a major series of acquisitions aimed to put the company at the forefront of preventative care.



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Dallas, TX

Dereck Lively Gets Key Ankle Injury Update For Dallas Mavericks

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Dereck Lively Gets Key Ankle Injury Update For Dallas Mavericks


About four minutes into the Dallas Mavericks’ recent contest against the Denver Nuggets, starting center Dereck Lively left the contest with an ankle injury.

Evidently, the Mavericks are already dealing with massive injuries to Luka Doncic and Kyrie Irving. Those two superstars lead the team and Lively is right up there as one of the more impactful players on the team.

However, just one day after the injury, Lively has already gotten X-ray updates back on his sprained right ankle, and it’s a bit of a relief for Mavericks fans. Chris Haynes provided the recent update.

“Dallas Mavericks center Dereck Lively II received an X-ray on his sprained right ankle and results were negative. No timeline established as of now,” Haynes reported.

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The Mavericks are struggling to stay healthy, though doing so by April is the main goal and it’s just January. Lively has had issues remaining on the hardwood for the club in his inaugural two seasons, and it’s leaving some fans concerned.

READ MORE: Latest Timeline for Luka Doncic’s Return to Dallas Mavericks Revealed

Stick with CommanderGameday and the Locked On Commanders podcast for more FREE coverage of the Washington Commanders throughout the 2024 season.

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In messy city manager search, Dallas council failed in its fundamental job

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In messy city manager search, Dallas council failed in its fundamental job


The Dallas city manager search has unspooled in the chaotic style we’ve come to expect from this City Council. There was the ho-hum recruitment brochure draft featuring the wrong skyline. There was the council civil war over the timeline of the search and the flow of information about candidates. And nothing says “we’ve got our act together” like eleventh-hour candidate interviews the day before Christmas Eve.

When two original semifinalists and a former Dallas city official dropped out of the race, no one was surprised.

We wish the next city manager the best of luck because no amount of talent and hard work can overcome a fundamental flaw of this search, and that is the lack of formal, measurable goals by the City Council. Our city is about to hire its CEO, but its board of directors has no metrics to set expectations or hold that person accountable for the most important job in Dallas.

If you want to understand how dysfunctional the situation is, start with the fact that the council’s appointees — the city manager, city attorney, city secretary and city auditor — haven’t had a performance review in more than two years. Our last city manager, T.C. Broadnax, had his last evaluation in August 2022. He left in May 2024. Interim City Manager Kimberly Bizor Tolbert, the front-runner for the job, hasn’t had an evaluation since her appointment last spring.

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The council has hired a consultant over the years to help conduct the evaluations of its appointees. But no consultant can fix this council’s main problem, and that is its inability to come together to develop a consensus around four or five priorities and the metrics to measure progress in those areas.

Even when performance reviews for council appointees were happening, the process was broken. The council’s consultant called council members individually to solicit feedback, with the consultant identifying “themes” shared verbally with the council, and with no particular comments attributed to specific people, according to a 2022 memorandum from Management Partners, the firm hired to do the work. The city manager and other appointees were “invited” to prepare a report on their accomplishments and goals for next year, with the potential for “refinements” based on council input.

There was no written report from the performance evaluation, other than any goals reports produced by the appointees.

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It’s a shockingly wishy-washy approach to evaluating an employee, let alone a C-suite executive.

And don’t expect even a veneer of transparency for taxpayers. Last year, we requested Broadnax’s goal reports and were told by the city that there were no responsive records, only to hear a council member remind her colleagues last week that Broadnax produced a memo with his goals after his last performance review in 2022. City staff failed to release this memo in response to our request. Such a document should be public under the Texas Public Information Act.

Now, on the brink of hiring its next city manager, the council is panicking about the fact that it hasn’t evaluated its council appointees in a long time and that it has no measurable goals for any of them. The council committee whose job it is to codify the annual review process can’t seem to agree on how to move forward.

Mayor Pro Tem Tennell Atkins chairs the committee. In a December meeting, he led a discussion on next steps to resume performance reviews of council appointees. Council members learned that their previous consulting firm, Management Partners, had been acquired by Baker Tilly, the company that is leading the messy city manager search. But the woman who had worked closely with the council on previous performance reviews was no longer associated with either company.

The committee gave city staff mixed signals on how to proceed. Some council members said they wanted to continue working with the previous consultant. Others asked to hear from Baker Tilly. Some said they were dissatisfied with the previous consultant or concerned about Baker Tilly and wanted to hear from other vendors. Council members said to move quickly.

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By the time the council committee picked the conversation back up this month, confusion reigned. Baker Tilly prepared a presentation that described a performance review process very similar to what the council had with its previous partner. Atkins indicated that the council was moving forward with Baker Tilly using an existing contract, and other committee members pushed back. Meanwhile, an assistant city manager and an assistant human resources director couldn’t answer a council member’s simple question about when the council appointees were last evaluated.

“Yes, we are overdue for these reviews, but I think that they should be pursued seriously with the appropriate time periods involved,” said council member Paul Ridley. “I don’t think we should out of convenience select someone who is doing other work for the city at the present time.”

Council member Jesse Moreno asked whether Baker Tilly would have a conflict of interest in facilitating the performance review of an executive the firm helped hire. A representative tried to assuage Moreno, but he is right to bring that up, given that Baker Tilly would be required to conduct a new search at no cost to Dallas if the city manager doesn’t last a year. Council members should be skeptical. (Keep in mind it was Baker Tilly that produced the hiring brochure for Dallas city manager. The cover photo was a shining image of the Houston skyline.)

The council now seems poised to consider other consultants for the performance evaluations. Council members should do their due diligence instead of repeating their sloppiness for the sake of comfort.

Hire a consultant, if you must, to moderate the conversation or offer pointers, but a management firm can’t do the hard work for you.

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Outgoing council member Jaynie Schultz said it best: “This problem is ours as a council. We have not done our work. And so we can try spending all of our time diverting all the problem and the blame on Baker Tilly. … The delay is us, 100% us.”

The council’s job is not to run the city but to set clear, measurable expectations for the people it hires to do that. It’s telling that council members have relied on a consultant to remind them to perform a fundamental duty.

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How Jerry Jones values HC position will be telling as Dallas Cowboys’ search ramps up

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How Jerry Jones values HC position will be telling as Dallas Cowboys’ search ramps up


There’s only one surprising tidbit in the revelation that Jerry Jones and Deion Sanders have had a discussion about the head coaching vacancy with the Cowboys.

How was Jones able to place the call before Sanders picked up his cell to initiate contact?

Sanders gets to remind officials at the University of Colorado that he’s a hot commodity while he prods for an extension. Jones redirects the conversation from his culpability in the Cowboys’ current condition while offering fans and candidates a reminder that this is a high-profile job coaches crave.

Jones, the Cowboys owner and chief content creator, has done it again. Ryan Reynolds didn’t generate this much initial buzz for Deadpool & Wolverine.

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But what happens in the coming days and weeks as the search unfolds and the idea of Jones and Sanders turns out to be more of a marriage of marketing convenience than a reality? Will the words of Hall of Fame quarterback Troy Aikman, who pointed out Monday that the job can be high-profile without being coveted, prove to be right?

Troy Aikman rips Cowboys after Mike McCarthy decision, doesn’t see Dallas as ‘coveted’ gig

The Cowboys will have no shortage of qualified candidates. There are enough veteran coaches searching for a fond farewell along with young, up-and-coming talents looking for their first big break to keep that pool stocked.

Back to Aikman’s point, there are other dynamics in play. One is the relative value Jones places on the position of head coach.

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It was nearly 31 years ago in a hotel bar that Jones told reporters, “there are 500 coaches who could have won the Super Bowl with our team.‘’ A few days later the partnership between Jones and Jimmy Johnson came to an acrimonious end.

As he stood outside of the Cowboys locker room a few days ago after the loss to Washington to end the regular season, Jones was asked if he had a list of coaches ready if he moved on from Mike McCarthy. Jones again landed on that number, saying there would be “about 500 of them down there (Senior Bowl trip) that would love to be on the staff.‘’

Hyperbole? Sure. Jones rarely makes a point without one.

What you haven’t heard Jones say is there are 500 pass rushers who can do what Micah Parsons does or 500 quarterbacks who could start for the Cowboys.

Jones is willing to pay his top players big money because he believes they add rare value to the team’s potential success. He doesn’t hold coaches in the same regard. To him, their value is squeezed by the players on one side and by the management structure in place on the other.

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Deion Sanders, Cowboys coach? Even AT&T Stadium isn’t big enough for that many egos

Here’s another point. Past coaching hires have allowed Jones to sell hope to the fan base that a new voice, a new approach, will make a difference. That’s a tougher sell than ever.

Why? More than any other time, the ire of fans feels directly aimed at Jones. This past season was as much of a referendum on what Jerry and Stephen Jones didn’t do to build on a team that went 12-5 in three consecutive seasons as it was on the job done by McCarthy and his staff.

If you think that’s hyperbole, you weren’t at AT&T Stadium for the playoff game between UT and Ohio State. When Jones’ face flashed on the jumbotron as one of the celebrities in attendance, the crowd broke out in a comically loud boo.

The search for the 10th head coach in franchise history began with a call to Deion Sanders.

It will be interesting to see how it ends.

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Catch David Moore and co-host Robert Wilonsky on Intentional Grounding on The Ticket (KTCK-AM 1310 and 96.7 FM) every Wednesday night at 7 o’clock through the Super Bowl.

Find more Cowboys coverage from The Dallas Morning News here.



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