Loading ...DBC on Fed Heads
Ignore their efficacy once in office as FOMC heads, look at how they were appointed.
We had high inflation so we appointed an inflation hawk, Paul Volcker.
We had a free-market-oriented president, and so we appointed an adherent to Ayn Rand, Alan Greenspan.
We were on the cusp of a serious financial crisis and so we appointed the putative world’s expert on the Great Depression, Ben Bernanke.
We were not done with our highly flawed monetary policy and so we appointed a sock puppet, Janet Yellen.
It was time to begin to bring the system back into equilibrium–quantitative tightening and higher rates–and so we appointed Jerome Powell.
Everybody thought Trump would appoint his “bitch” to impose ultra-loose monetary policy (somebody like Brainard would suffice.) Shockingly, he appoints one of the biggest critics of loose monetary policy (ZIRP and NIRP) over the last decade, Kevin Warsh.
What’s up with that? Well, you can conclude he’s just like all the other dorks and will show the hawkishness was bullshit, or you can build a new model that assumes his job is to guide us through a long-overdue reset–The Great Reset–that others have lacked the spine to let happen. I am betting on the latter.
My work here is done. You’re welcome. Have a nice day.