{"id":370237,"date":"2021-11-21T06:23:52","date_gmt":"2021-11-21T03:23:52","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/the-feds-left-face-decision-on-jerome-powell-reign\/"},"modified":"2021-11-21T06:23:52","modified_gmt":"2021-11-21T03:23:52","slug":"the-feds-left-face-decision-on-jerome-powell-reign","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/the-feds-left-face-decision-on-jerome-powell-reign\/","title":{"rendered":"#The Fed\u2019s left-face decision on Jerome Powell reign"},"content":{"rendered":"<p>&#8220;<strong>#The Fed\u2019s left-face decision on Jerome Powell reign<\/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>As this column goes to press, the Wall Street C-suite class is giving Jerome Powell slight odds to be 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>ointed as Federal Reserve chairman. Yes, he is disliked by progressives such as Elizabeth Warren; they have a big say in just about anything the Biden administration does these days and they think Powell is some pawn of Wall Street because of his banking background.<\/p>\n<p>That aside, Warren has been unusually silent in recent days as President Biden\u2019s selection deadline looms, which Wall Streeters say signals some kind of deal is in the works. The most likely outcome given that silence is that Powell will get the nod for another term, and the markets will breathe a sigh of relief that an out-and-out <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">social<\/a>ist isn\u2019t tapped to run the nation\u2019s central banks.<\/p>\n<p>Don\u2019t be too quick to celebrate, though, because what\u2019s good for Wall Street isn\u2019t necessarily in Main Street\u2019s best interest. To appease his pal Warren, Uncle Joe will likely have to fill some of those Fed vacancies, like vice chair, with some lefties that will force the \u201cmoderate\u201d Powell to run the Fed in a more dovish fashion than he has been (and yes, that\u2019s possible).<\/p>\n<p>For example, he may be forced to postpone his plans to taper the Fed\u2019s money-printing bond purchases, and he will definitely work to keep interest rates at zero as he tries to navigate the Dems\u2019 efforts to remake the US economy into a European-style welfare state.<\/p>\n<p>Again, this may or may not be the scenario that emerges. Fed Governor Lael Brainard, who is adored by the progressives for her easy-money advocacy, may get the nod because Biden is about as tough with the progressive wing of his party as he was with the Taliban.<\/p>\n<p>Either way, if you think the Fed has been too easy with the money supply and inflation is here to say, this isn\u2019t a time to rejoice. The nation\u2019s supposedly independent central bank is about to take a turn to the far left, and officially become an arm of White House fiscal policy, no matter who is named chair.<\/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\/11\/JoeBiden-4.jpg?quality=90&amp;strip=all&amp;w=1024\" alt=\"President Joe Biden\" class=\"wp-image-20219237\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/11\/JoeBiden-4.jpg?quality=90&amp;strip=all&amp;w=1536 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/11\/JoeBiden-4.jpg?quality=90&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/11\/JoeBiden-4.jpg?quality=90&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>If President Joe Biden retains Jerome Powell as Federal Reserve chairman, he will manipulate him to continue carrying out liberal monetary policies.<\/figcaption><figcaption><span class=\"credit\">REUTERS\/Jonathan Ernst<\/span><\/figcaption><\/figure>\n<p>For starters, despite Powell\u2019s reputation on Wall Street as a moderate, he\u2019s been a horrible Fed chairman, usurping its political independence. In 2019, he allowed himself to be bullied by President Donald Trump, backing off necessary Fed rate increases amid a booming economy that would have given the central bank extra juice when it needed it during the height of the pandemic-fueled recession.<\/p>\n<p>Without much wiggle room to cut short-term rates, during the COVID-19 crisis the Fed had just one real weapon in its arsenal: the heavy hammer of \u201cquantitative easing,\u201d economic-speak for printing money. Sure, it helped smooth out the impact of business closings and lockdowns, but it also created massive economic incentives to speculate, setting the stage for a market crash and, of course, spiking \u00adinflation.<\/p>\n<aside class=\"single__inline-module alignright\">\n    <\/aside>\n<p>It\u2019s one of the reasons why weird crypto assets are trading the way they are and meme stocks of money-losing companies keep attracting buyers: When there\u2019s this much liquidity, investors are giddily spendthrift in search of a \u00adreturn.<\/p>\n<p>Throw in the Biden administration\u2019s never-ending expansion of the federal welfare state \u2014 which Powell has supported \u2014 and you have the perfect recipe for the rapid rise in prices we\u2019re seeing today.<\/p>\n<p>Worst of all, Powell appears to be as recklessly oblivious to the inflation threat as Biden has been recklessly oblivious to the border crisis and every other malady in plain sight. Contrary to evidence, he\u2019s still calling inflation \u201ctransitory,\u201d as if he\u2019s been getting briefings from his press secretary on how to spin economic policy.<\/p>\n<p>Again, the central bank is supposed to be independent but Powell\u2019s obvious parroting the White House line is a blatant attempt by him to get reappointed, and according to many Fed watchers, borderline criminal. Half of the Fed\u2019s mandate is to fight inflation and he\u2019s offering no real warnings about its impact even as prominent liberal economists (think Larry Summers and Steve Rattner) say he\u2019s playing with fire.<\/p>\n<p>That\u2019s why some former Fed officials who care about the inflation threat tell me in a more perfect world, Powell shouldn\u2019t get a second chance. \u201cIt would be malpractice to keep him,\u201d one said. \u201cAt least Brainard has an IQ.\u201d<\/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\/11\/Elizabeth-Warren.jpg?quality=90&amp;strip=all&amp;w=1024\" alt=\"Sen. Elizabeth Warren\" class=\"wp-image-20219235\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/11\/Elizabeth-Warren.jpg?quality=90&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/11\/Elizabeth-Warren.jpg?quality=90&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/11\/Elizabeth-Warren.jpg?quality=90&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Sen. Elizabeth Warren is cheering for President Joe Biden to choose Fed Governor Lael Brainard over Jerome Powell.<\/figcaption><figcaption><span class=\"credit\">REUTERS\/Brian Snyder\/File<\/span><\/figcaption><\/figure>\n<p>OK, maybe Brainard, who has an economics Ph.D. from Harvard and has both private sector and policy experience, looks a lot better than Powell on paper (Powell is a former investment banker with a law degree from Georgetown). But if she\u2019s appointed chair, she will also owe her job to Elizabeth Warren, and that means mimicking Powell\u2019s approach (or lack of it) to the inflation scourge.<\/p>\n<p>But it could be worse. If we\u2019re really unlucky we may get the worst of both worlds, as many of my Wall Street sources are predicting: Powell\u2019s reappointment, and Biden slipping progressive Brainard in as a Fed vice chair just in time for the thick of the Christmas shopping season.\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\/11\/20\/the-feds-left-face-decision-on-jerome-powell-reign\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;#The Fed\u2019s left-face decision on Jerome Powell reign&#8221; As this column goes to press, the Wall Street C-suite class is giving Jerome Powell slight odds to be reappointed as Federal Reserve chairman. Yes, he is disliked by progressives such as Elizabeth Warren; they have a big say in just about anything the Biden administration does&#8230;<\/p>\n","protected":false},"author":1,"featured_media":370238,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/11\/newspress-collage-20219013-1637460276798.png?w=1024","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[112089,119850,5069,77105,77826,70550,70551,70552,78738,88069],"class_list":["post-370237","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-quantitative-easing","tag-11-20-21","tag-economy","tag-elizabeth-warren","tag-federal-regulation","tag-federal-reserve","tag-inflation","tag-interest-rates","tag-jerome-powell","tag-larry-summers"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/370237","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=370237"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/370237\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/370238"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=370237"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=370237"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=370237"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}