Any thoughts on Jerome Powell?
I personally think he has been a great Fed Chair (For you no-brain diehard Trump fans, Obama appointed JPow as Fed governor).
He's been very open minded and pragmatic and not bogged down in theory like many previous Fed chairs who were economists. He's been pushing for more realistic and data driven approaches within the Federal Reserve.
Amongst all the political hubbub from both left and right, JPow seems to be the only voice of reason. Someone who actually sees the facts and just doing his job best he can unswayed by what the politicians or the media says.
I think that thanks to him, the Federal Reserve is the only major governmental institution (technically it's private but I think we can call it part of the government) that actually sees through the exact economic impacts of racism and Covid.
JPow 2024?
Do you mean my man J-Pow?
You mean my man J "pound the teen, print the green" Powell?
You mean my main man J "print the money, get the honey" Powell?
You mean my main man J "down to smash, print the cash" Powell?
You mean my main man J "down to fuck, pump the stock" Powell?
Ehhhh he's alright.
Given the circumstances, he has fulfilled his role fairly well. The Fed is suppose to be an independent entity not subject to pressure from other branches of government. Unfortunately, there has been pressure put on him by the executive branch. And we only know the public arm twisting that has occured. Who knows what goes on behind the scenes. Tbh, I am not sure how how independent the Fed is these days. I could be wrong but when the Fed took aggressive action in the early part of the pandemic, the POTUS knew the plan before it was announced publicly.
Naw - he's in bed with the whole lot of them. Bailing them out, as best he can, with a massive balance sheet and intervention that is mind boggling. He's breached the rubicon, in my view, and monetary/fiscal policy are effectively the same thing at this point. It is enabling us a society to become complacent and unwilling to make the hard choices, or even evaluate the choices. He has destroyed the market's ability to effectively price discover and/or right itself. He's not the first, obviously, but he's taken it to the extreme.
He's not stupid. I'm not in the Fed are a bunch of idiots camp. From his view, what else can you do? If you don't ease, lower rates, provide massive amounts of balance sheet liquidity and, frankly, monetize the debt - we certainly aren't spending trillions in deficits for the foreseeable future. It's enabling unrealistic expectations and avoiding trade offs. We don't have to make the 'hard' decisions on the economic impact of a health crisis - because don't worry, the money is there. It's noble - and probably what we all 'want', despite our protests against it. My issue here is in the language - it's 'promote' - not guarantee. Not secure.
Maybe I'm wrong. Maybe the Fed is so all knowing, and powerful, that they are going to be able to simultaneously explode their balance sheet, run inflation perfectly, pull back all the stimulus at just the right time, convince our government to slow down the spending, let the debt roll off slowly but surely, raise rates as our deficit will start shrinking as the economy grows - and magically, all is fine. Dollar is still king. Fiscal house is in order. Fed is back into the shadows. However you want to think about it - we are far away from the simple view of 'price stability' and 'full employment'.
I'd be curious your view on how this plays out and/or what we should expect from Fed policy moving forward - I cannot fathom continued deficits, of the magnitude of the last 20 years, with the fed enabling it - for the next 20. Maybe i'm too cynical? Open to more informed opinions - i'm a fly by night economist, and a bad one generally.
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