GAMES
He was, after all, appointed by the man the Left despises so adamantly – Donald Trump. In fact, Powell took Yellen’s spot – unseating her as Fed chief when her term was up. (I always thought that Trump, knowing how keen he was to print money and issue debt, would have been better off keeping Yellen in the seat. Nonetheless, he wanted his own guy, as did then-Treasury Secretary Steven Mnuchin.) So, it makes logical sense that Yellen and Biden would seek a change. Especially now... beginning to leak in the lead-up to the meeting. And if the previews are any indication, it seems this insane world of the Fed’s virtual reality is scheduled to continue... BUBBLEWORRIES It’s a strange world we live in when bad is good and good is bad... But when balancing the risks and rewards of investing amid a Fed- induced sugar high, the world seems upside down. Already, there are messages that are After all, to continue sending stocks higher despite the continued threat of COVID shutdowns and a new variant making its way through the economy feels pretty insane. Cooler heads are warning against a new kind of “irrational exuberance” (a term well-
the papers, and before you know it, the markets
will adjust and possibly a
new trajectory will be set. Already, there are messages that are beginning to leak in the lead-up to the meeting. And if the previews are any indication, it seems this insane world of the Fed’s virtual reality is scheduled to continue... At present, there’s talk of moving current Fed Chairman Jerome Powell aside in order to make way for someone far more dovish and in favor with Treasury Secretary Janet Yellen, former head of the Federal Reserve. Lael Brainard, a former professor at MIT who served as the under secretary of the Treasury for International Affairs at the Department of the Treasury, joined the Federal Reserve board in 2014. Brainard has an impressive background, is well-liked, and was mentioned repeatedly as a possible contender for secretary of the Treasury under President Joe Biden, though he ultimately went with Yellen. (Brainard had also been discussed as a contender for the position had Hillary Clinton won in 2016.) In appointing Brainard to head of the Fed when Powell’s term expires, Yellen would help ensure a more dovish and more politically aligned view of the economy, particularly with that of the current administration. ARE POWELL’S DAYS NUMBERED? Though Powell seems to be doing everything right in the eyes of the administration, he isn’t quite “their” Fed chief.
American Consequences
45
Made with FlippingBook - professional solution for displaying marketing and sales documents online