Yesterday, the Senate confirmed both of President Obama’s nominees to serve on the Federal Reserve Board of Governors, bringing the board to a full seven members for the first time since April 2006. Nominations had been pending since December.
New Fed Governors are: Harvard economist Jeremy Stein and former private-equity executive Jerome Powell . Stein previously served in the Obama administration in the Treasury Department and at the National Economic Council. Powell served in the Treasury Department under President George H.W. Bush and is a visiting scholar at the Bipartisan Policy Center.
Stein's addition to the board creates yet another M.I.T. connection to the Fed. Stein received his AB in economics summa cum laude from Princeton University in 1983 and his PhD in economics from M.I.T. in 1986.
According to the Boston Globe, Stein was in 2008 a strong advocate of governmental intervention to help banks survive the financial crisis.
Absurdly, Stein has done "research into the financial markets’ flaws" and has called for tougher banking regulations. To complete the absurdity, Stein now joins the organization that has resulted in making the financial system far from free market. All in all, a dangerous government interventionist. And, oh yeah, Stein spent a year at Goldman Sachs from 1986 to 1987 as an intern.
Jerome "Jay" Powell is an elitist, establishment insider. He worked at the investment banking firm Dillon Read and was also with the private equity firm Carlyle Group from 1997 to 2005, which included the period when George H.W. Bush and his cronies were super-active at the firm.
Powell appears likely to support more money printing, which coincidentally will help out his bankster buddies.
In Senate testimony, he said:
In monetary policy, the task will be providing support for the still weak economy but exiting the current highly accommodative policies in time to avoid higher inflation.Translation: He is in favor of money printing, with accelerating price inflation an afterthought.
It's not surprising that the banksters were all in favor of these two characters. WSJ two weeks ago reported that "Representatives of Goldman Sachs and J.P. Morgan also expressed their support for the nominees in phone calls with [ Sen. David] Vitter's staff."