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HomeJanet Yellen: The Wrong Choice
Posted by Larry Doyle on October 9th, 2013 9:03 AM |
President Obama is widely expected to announce this afternoon that he is nominating Fed governor Janet Yellen as the next chairman of the Federal Reserve, the most powerful institution in the world.
I am sure Yellen’s nomination will receive the standard praiseworthy platitudes from a wide array of sycophants deeply embedded in the system.
For those pleasantly hoodwinked by the charades masquerading as our current central bank policy, a Yellen-led Federal Reserve should look just divine. Meanwhile those watching closely would call her style of central banking little more than smoke and mirrors.
The WSJ is more deferential and asserts this morning:
Sedating the Quantitative Easing Monster
Posted by Larry Doyle on September 19th, 2013 9:04 AM |
At what point does a patient become addicted to medication so that a subsequent malady is potentially as bad if not worse than the original condition the prescribing doctor was trying to treat?
How disturbing is it to learn of individuals strung out on pain medication or more specifically methadone to treat a debilitating condition or drug habit?
Very disturbing.
In a very similar fashion, our resident medic, that being Fed chair Ben Bernanke, found himself boxed in by our patient, supposedly our economy but really our markets, that had begun to convulse and palpitate when word that its QE medication was going to be lessened. (more…)
Won’t Have Larry Summers to Kick Around Anymore
Posted by Larry Doyle on September 16th, 2013 10:51 AM |
I have no doubt that Larry Summers’ choice to withdraw from his well known desire to be the chairman of the Federal Reserve only came at the behest of the White House.
I firmly believe that President Obama and the most senior execs on Wall Street wanted their pal Larry to be the next Fed chair.
As it became increasingly obvious that a Summers nomination would have required an expenditure of significant political capital, the administration likely told Larry to do the honorable thing and step aside gracefully.
Most observers know that Summers is not typically defined as graceful, but rather more akin to a lighting rod. As seen in this brief Bloomberg clip: (more…)
Federal Reserve Internal Survey: ‘Will Beatings Continue Until Morale Improves?’
Posted by Larry Doyle on August 28th, 2013 10:16 AM |
The Federal Reserve has to be one of the single most opaque institutions not only in our nation but in the world. I often think of the Fed as having a door in which those inside can see out, but those outside can never see in.
In light of this premise, I am exceptionally surprised to read of a recent survey of Federal Reserve employees that is highlighted by The Huffington Post.
Regulators overseeing the nation’s largest financial institutions are distrustful of their bosses, afraid to speak out, and feeling isolated, according to a confidential survey this year of Federal Reserve employees. (more…)
Get Ready for Larry Summers as Next Fed Chair
Posted by Larry Doyle on August 27th, 2013 11:53 AM |
Has there ever really been a doubt that Larry Summers would be the next chairman of the Federal Reserve?
Not in these parts.
Remember, President Obama — just like his predecessors — will announce who the chairman of the Federal Reserve will be, but that does not mean that he actually makes the selection.
Who do I believe really makes the selection or has veto power over the president’s choice?
(more…)
Bhide: Wanted: A Boring Leader for The Fed
Posted by Larry Doyle on August 21st, 2013 7:22 AM |
So who should be the next chairman of the Federal Reserve?
While we are fed a regular diet of drivel from those who might believe they know what is in the best interest of our nation, these political insiders might want to look a little further for truly informed opinion. To whom should they listen?
I would suggest they lend an ear to Amar Bhide, a professor at the Fletcher School of Law and Diplomacy at Tufts University, who provides real sense on cents on this topic. (more…)
Federal Reserve: A 100 Year Old Failure
Posted by Larry Doyle on August 14th, 2013 8:30 AM |
The Federal Reserve was founded in 1913 and here we sit 100 years later wondering who will be the next chair of this all powerful institution.
While there is serious politicking going on for both Larry Summers and Janet Yellen, will it really matter whether it is one or the other running this institution?
Perhaps at the margin and for optics the choice of Summers vs Yellen might matter, but in the grand scheme of things neither of these individuals is going to redirect the Federal Reserve from its failed policies. You don’t think so? (more…)
Why Larry Summers Will Be Next Fed Chair
Posted by Larry Doyle on July 29th, 2013 8:36 AM |
The race to occupy the most influential position in the nation — that is, the chairman of the Federal Reserve — is now widely acknowledged to be a two horse sprint between Janet Yellen and Larry Summers.
Those supporting the appointment of Ms. Yellen, including Nancy Pelosi, Christina Romer and others, are actively and publicly voicing their endorsement of the current Vice-Chairman of the Federal Reserve.
Meanwhile we hear little from those most closely aligned with the oft-described arrogant — and sleep-deprived? — Mr. Summers. I gather that Robert Rubin and others supporting Summers are more comfortable operating under the blanket that has come to define Washington as being in bed with Wall Street.
So who will President Obama appoint?
(more…)
Bernanke Walks It Back
Posted by Larry Doyle on July 18th, 2013 8:53 AM |
It took a few weeks, but the relatively recent smokescreen of a strengthening economy put forth by Ben Bernanke began to lift yesterday.
I find it especially interesting that it was not some new string of weak economic data that prompted the Fed chair to express increased caution about what is truly going on in the real world economy.
In fact, for what I believe might be the first time, Bernanke cautiously addressed the fact that the structural changes in our economy reflected in a significant decline in the labor force participation rate might be more indicative of our economic health than the actual unemployment rate.
A whiff of the truth amidst the daily diet of verbal diarrhea emanating from D.C? What a novel concept. (more…)
Boston Fed Research Paper: The Key Variable for Monetary Policy Is . . .
Posted by Larry Doyle on June 26th, 2013 7:47 AM |
Are we supposed to really think that Ben Bernanke believes our economy — and especially our employment situation — is markedly improving?
If we were to gather our news from USA Today or similar outlets, I guess we could just think just that.
Let’s dig a little deeper.
What are many in and around the Federal Reserve likely reviewing in an attempt to gauge the real health of our employment situation? (more…)
