Greenspan, Bernanke, and Yellen add up to 30 years of Jews being the face of the U.S. Federal Reserve System.
Now a gentile will have that honor, as President Trump choose not to reappoint Janet Yellen as Chair. It’s the norm to reappoint, and I’m certain Ms. Yellen would have been reappointed by Hillary Clinton.
What does it mean to have a non-Jew heading up the Fed? Not much. The show will go on pretty much as it has, with a little tweaking here and there.
If you’re conspiracy-minded, you might speculate that the Jewish financiers who control world money markets see an economic collapse coming and want to make sure that one of their own doesn’t get the blame.
Excerpt from Bloomberg
President Donald Trump plans to nominate Federal Reserve Governor Jerome Powell to the top job at the U.S. central bank, according to four people familiar with the decision.
In Powell, he’ll select a former private-equity executive who favors continuing gradual interest-rate increases and sympathizes with White House calls to ease financial regulations. The president will announce his decision Thursday at 3 p.m. Washington time from the Rose Garden, the White House said in a statement. Powell declined to comment when approached by a reporter outside his Washington-area home.
Market reaction to the news was muted, given broad expectations that Powell would be the pick. The dollar retreated slightly in Asian trading Thursday, and Treasury yields dipped. S&P 500 futures were down modestly as traders consider prospects for U.S. tax cuts.
If confirmed by the Senate, the 64-year-old former Carlyle Group LP managing director and ex-Treasury undersecretary would succeed Fed Chair Janet Yellen, who has raised borrowing costs four times starting in late 2015 and just began scaling back the central bank’s $4.5 trillion balance sheet.
“He represents a bit of the continuation of the status quo without being named Yellen,” said Gennadiy Goldberg, interest-rate strategist at TD Securities. “He’s relatively dovish-leaning on policy, but also willing to undertake some deregulation at the margin. He’s basically a perfect candidate for Trump.”
The decision would cap a months-long White House search that included consideration of re-nominating Yellen, or installing outsiders such as National Economic Council Director Gary Cohn, Stanford University economist John Taylor or former Fed Governor Kevin Warsh. The Wall Street Journal earlier on Wednesday reported that Trump had selected Powell.
A Republican appointed to the Fed in 2012 by Democratic President Barack Obama, Powell has earned a reputation as a non-ideological and pragmatic policy maker. While he hasn’t played a prominent public role in formulating and explaining monetary policy, he has generally backed Yellen’s cautious approach to withdrawing stimulus.
Yellen, 71, who is the first woman to lead the U.S. central bank, will become the first Fed chair since 1979 not to be reappointed to the job.
My choice would have been Professor John Taylor, whom I met briefly a couple of decades ago. I can’t picture him being a tool of the financial oligarchs. His famous (to us economists) Taylor’s Rule would replace Fed politics with simple math. Investopedia presents the Rule this way:
The equation, with some alterations, used by central banks under Taylor’s rule looks like:
i = r* + pi + 0.5 (pi-pi*) + 0.5 (y-y*)
i = nominal fed funds rate
r* = real federal funds rate (usually 2%)
pi = rate of inflation
p* = target inflation rate
Y = logarithm of real output
y* = logarithm of potential output
Operating with a rule would take the manipulation of the economy out of play.
Which is probably why John Taylor wasn’t picked.