{"id":350802,"date":"2021-10-10T04:25:06","date_gmt":"2021-10-10T01:25:06","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/jerome-powells-taper-chase-may-cost-him-his-job\/"},"modified":"2021-10-10T04:25:06","modified_gmt":"2021-10-10T01:25:06","slug":"jerome-powells-taper-chase-may-cost-him-his-job","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/jerome-powells-taper-chase-may-cost-him-his-job\/","title":{"rendered":"#Jerome Powell\u2019s &#8216;taper&#8217; chase may cost him his job"},"content":{"rendered":"<p>&#8220;<strong>#Jerome Powell\u2019s &#8216;taper&#8217; chase may cost him his job<\/strong>&#8221;<\/p>\n<div>\n<aside class=\"single__inline-module alignleft\">\n<div class=\"inline-module inline-module--columnist inline-module--author\">\n<div class=\"inline-module--author__img\">\n            <img decoding=\"async\" width=\"76\" height=\"69\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2013\/08\/Gasparino_Charles_headshot.png?w=76&amp;h=69&amp;crop=1\" class=\"attachment-nyp_columnist size-nyp_columnist\" alt=\"Charles Gasparino\" loading=\"lazy\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2013\/08\/Gasparino_Charles_headshot.png?w=152 152w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2013\/08\/Gasparino_Charles_headshot.png?w=114 114w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2013\/08\/Gasparino_Charles_headshot.png?w=76 76w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2013\/08\/Gasparino_Charles_headshot.png?w=38 38w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2013\/08\/Gasparino_Charles_headshot.png 706w\" sizes=\"auto, (max-width: 76px) 100vw, 76px\"\/><\/div>\n<\/div>\n<\/aside>\n<p>Jerome Powell should be a layup for a second term as Federal Reserve chair, and yet he\u2019s not.\u00a0<\/p>\n<p>The problem stems from Powell\u2019s plans to begin \u201ctapering,\u201d or ending the Fed\u2019s massive printing of money through asset purchases in the bond market. That\u2019s leaving him vulnerable on re<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ointment, a growing number of Wall Street Fed watchers tell me.\u00a0<\/p>\n<p>The bear case for Powell starts when his tapering exposes the big lie being promulgated by the Democratic leadership that their new spending plan is \u201cpaid for.\u201d\u00a0<\/p>\n<p>Without the Fed\u2019s snapping up all that debt to fund the blowout, the lie would be made public through sharply higher interest rates next year because there aren\u2019t enough taxes to be raised or foreign buyers to fund our deficit, according to the Powell-reappointment naysayers.\u00a0<\/p>\n<p>Those higher rates on Treasury debt would almost certainly cause a recession. Congress would turn red and Joe Biden\u2019s goal to emulate FDR would turn to mud.\u00a0<\/p>\n<p>That is really why you hear progressives like Sen. Elizabeth Warren calling for Powell\u2019s head, these people say. It\u2019s also why the White House, despite public statements in support of Powell, is said to be having second thoughts on his reappointment.\u00a0<\/p>\n<p>As the nation\u2019s central bank, the Federal Reserve is supposed to control the money supply without fear of political repercussions. Yet its dual mandate of keeping inflation low while maintaining full employment is always a careful balancing act with obvious political implications.\u00a0<\/p>\n<p>Paul Volcker defined the office\u2019s independence with huge rate increases during the late 1970s and early 1980s. It helped cost Jimmy Carter the presidency, but wiped out the scourge of inflation that was ravaging the US economy and destroying the middle and working classes.\u00a0<\/p>\n<p>We\u2019ve come a long way from the days of Volcker, unfortunately. My colleague Neil Cavuto says Powell reminds him more of Alfred Pennyworth, the uber-loyal butler to Bruce Wayne in the Batman saga.\u00a0<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"683\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/10\/jerome-powell.jpg?quality=90&amp;strip=all&amp;w=1024\" alt=\"Federal Reserve Chairman Jerome Powell walks between meetings with Senators on Capitol Hill on October 06, 2021\" class=\"wp-image-19756388\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/10\/jerome-powell.jpg?quality=90&amp;strip=all&amp;w=1536 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/10\/jerome-powell.jpg?quality=90&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/10\/jerome-powell.jpg?quality=90&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Federal Reserve Chairman Jerome Powell walks between meetings with Senators on Capitol Hill on October 06, 2021.<\/figcaption><figcaption><span class=\"credit\">Kevin Dietsch\/Getty Images<\/span><\/figcaption><\/figure>\n<p>Powell\u2019s Fed track record shows he\u2019s often been far more obsequious than ol\u2019 Alfred. Recall that it took just a few mean tweets from President Trump a few years ago for Powell to back off obviously necessary Fed rate increases when the economy appeared to be overheating.\u00a0<\/p>\n<p>After Trump lost to Biden in November\u2019s election, Powell continued to print money at an alarming pace, maintaining a near zero-interest-rate policy and massive asset purchases despite the post-COVID recovery.\u00a0<\/p>\n<p>Now Powell has suddenly started to show some spine, and with good reason: Prices on \u00adeverything from food to housing are spiking with no end in sight. There\u2019s so much money sloshing around that average people are trading fake cryptocurrencies and chasing money-losing meme stocks.\u00a0<\/p>\n<p>These types of asset bubbles never end well. (Think the 2008 financial crisis, or the Nasdaq crash before that.) Even worse, inflation is a pernicious tax on working people, which history shows is the fastest way to sow societal unrest.\u00a0<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/10\/USA-FED_DIGITAL-CURRENCY.jpg?quality=90&amp;strip=all&amp;w=1024\" alt=\"Sen. Elizabeth Warren (D-MA) greets Federal Reserve Chairman Jerome Powell during a Senate Banking, Housing and Urban Affairs Committee hearing\" class=\"wp-image-19756405\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/10\/USA-FED_DIGITAL-CURRENCY.jpg?quality=90&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/10\/USA-FED_DIGITAL-CURRENCY.jpg?quality=90&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/10\/USA-FED_DIGITAL-CURRENCY.jpg?quality=90&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Sen. Elizabeth Warren greets Federal Reserve Chairman Jerome Powell during a Senate Banking, Housing and Urban Affairs Committee hearing, September 28, 2021.<\/figcaption><figcaption><span class=\"credit\">Kevin Dietsch\/Pool via REUTERS\/File Photo<\/span><\/figcaption><\/figure>\n<p>That\u2019s where the taper comes in. When the Fed buys bonds, as it\u2019s been doing since the pandemic hit, it\u2019s juicing the economy for growth; rates fall and banks awash in cash lend to businesses.\u00a0<\/p>\n<p>When the Fed sells bonds, it wants to achieve the opposite: slowing the economy to quell inflation as interest rates rise.\u00a0<\/p>\n<p>Through the policy of tapering, Powell is looking to slow all this just a bit by ratcheting back the trillions of dollars in bond purchases the Fed has been making since the pandemic began. If \u00adPowell doesn\u2019t blink, the Fed will go from buying at least $120 billion a month in bonds to buying zero in the next year.\u00a0<\/p>\n<p>But Powell\u2019s plans to protect the middle class are running into the Democratic Party\u2019s plans to remake the economy through massive <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">social<\/a> spending. Warren, Bernie Sanders, AOC and the lefties who have been setting Biden\u2019s economic agenda know the $5 trillion in spending they\u2019re demanding isn\u2019t \u201cpaid for\u201d unless the Fed helps foot the bill.\u00a0<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/10\/Congress-Government-Funding.jpg?quality=90&amp;strip=all&amp;w=1024\" alt=\"Rep. Maxine Waters, D-Calif., fist bumps Federal Reserve Chairman Jerome Powell after a House Financial Services Committee hearing Thursday, Sept. 30, 2021\" class=\"wp-image-19756432\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/10\/Congress-Government-Funding.jpg?quality=90&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/10\/Congress-Government-Funding.jpg?quality=90&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/10\/Congress-Government-Funding.jpg?quality=90&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Rep. Maxine Waters, D-Calif., fist bumps Federal Reserve Chairman Jerome Powell after a House Financial Services Committee hearing, Thursday, Sept. 30, 2021.<\/figcaption><figcaption><span class=\"credit\">Sarah Silbiger\/Pool via AP<\/span><\/figcaption><\/figure>\n<p>Of course, there are those on Wall Street who say Biden won\u2019t risk the possible market tumult that could accompany replacing Powell. Investors could lose confidence in the US financial system and might sell US stocks, bonds and just about everything else.\u00a0<\/p>\n<p>Maybe the Dems\u2019 spending plans get killed by the two Dem holdouts, Sens. Joe Manchin and Kyrsten Sinema, and Powell can have his taper.\u00a0<\/p>\n<p>There are others \u2014 and their numbers are growing \u2014 that believe Manchin and Sinema will largely cave to the demands of their party. Biden, in between licks of those ice cream cones, will be bullied by the lefties into replacing or at least defenestrating Powell. Ta-ta to the taper.\n                        <\/p><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/nypost.com\/2021\/10\/09\/jerome-powells-taper-chase-may-cost-him-his-job\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;#Jerome Powell\u2019s &#8216;taper&#8217; chase may cost him his job&#8221; Jerome Powell should be a layup for a second term as Federal Reserve chair, and yet he\u2019s not.\u00a0 The problem stems from Powell\u2019s plans to begin \u201ctapering,\u201d or ending the Fed\u2019s massive printing of money through asset purchases in the bond market. That\u2019s leaving him vulnerable&#8230;<\/p>\n","protected":false},"author":1,"featured_media":350803,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/10\/USA-ECONOMY_JOBS-FED.jpg?quality=90&strip=all&w=1024","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[117283,74336,70550,78738],"class_list":["post-350802","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-10-9-21","tag-bonds","tag-federal-reserve","tag-jerome-powell"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/350802","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=350802"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/350802\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/350803"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=350802"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=350802"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=350802"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}