Jerome Powell: Is Trump's pick for the Fed safe?

Trump’s Smart Fed Pick

Janet Yellen deserved another four years as Federal Reserve chair. After all, “the economy is in sound shape, and there's precedent for re-appointment by both Republican and Democratic presidents,” writes Daniel Moss for Bloomberg. But in nominating Jerome Powell to replace her, President Trump has picked the next best thing: Yellen without Yellen.

“On regulation, Powell probably is inclined toward some easing of post-crisis rules. But he generally isn't seen as someone who would take a flamethrower to them either. The difference with Yellen is probably around the margins,” Moss says.

“It’s true we don't really know how someone will lead until they actually, well, become the leader. Events can shape policy way more than personal inclinations do. Remember when the Bernanke chairmanship was supposed to be about inflation targets? In retrospect, that initiative almost seems like a footnote given what else Bernanke contended with.

“Unlike his immediate predecessors, Powell doesn't have a doctorate in economics. It would be unfair to hold this against him. Paul Volcker didn't have one, and he is generally recognized as a titan of central banking.”

No comments:

Post a Comment