Saturday, August 22, 2015

Is This Another Sign Janet Yellen is on Her Way Out at the Fed?

Uneasy lies the head that wears a crown.
-William Shakespeare
I have been highly suspicious of the investigation circling around Federal Reserve Chair Janet Yellen and possible leaks by her about Fed monetary policy thinking (See: here, here and here.). Is someone out to get Yellen?

Now something even more curious is developing. Back in May I reported:
Why is Janet Yellen Skipping Jackson Hole?

...Ron Insana hints it may have something to do with the current separate  DOJ and House investigations into a leak from the Fed (that possibly came from Yellen).

Insana writes at CNBC:
The annual economic symposium there, sponsored by the Kansas City Fed, has become a virtual staging ground for new policy declarations from the likes of Alan Greenspan, Ben Bernanke and global central bankers who want to drive home policy points in late August, just before everyone returns from their summer vacation. But something funny is happening on the way to Jackson Hole this year. Fed Chair, Janet Yellen, has decided not to participate, the first Fed chair to skip the trip in modern memory...
 This hint from an insider like Insana should not be taken lightly. It continues to look like powers that be may be putting Yellen in play to oust her, which, of course, would mean that the former head of Israel's central bank, current vice-chairman Stanley Fischer, would become acting Fed chair.
Now get this, it has just been announced that, while Yellen will not be attending, Fed vice-chairman Stanley Fischer will be attending.

Here is the bulletin put out by Fidelity:
 BULLET: US: Added last night- Fed VC Stanley Fischer to......
US: Added last night- Fed VC Stanley Fischer to speak Sat, Aug 29 at the lunch
hour on "U.S. Inflation Developments" at the Federal Reserve Bank of Kansas City
Economic Symposium, Jackson Hole, Wyoming.
And catch the topic, US Inflation Developments. It can be argued that the Fed view on inflation is the most important factor that will determine whether the Fed raises interest rates at its September 16-17 monetary policy meeting, and it is Fischer, not Yellen, that will be giving this important speech.

Another very curious development, I say.

-RW

4 comments:

  1. Absolutely, and hilarious that inflation is the topic he chose especially since Israel's economy has experienced inflation in housing prices, rent, and food and other essential goods all while he was their central bank president. The guy might think he's being wonky at Jackson Hole when he's really got a horrendous Keynesian economic argument.

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  2. You have speculated before that Fischer, not Yellen, is calling the shots at the Fed. Could be.

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  3. Great, Israel already runs things in DC as far as our military policy goes. Now we'll give them control over our money? Wonderful. The USSA is truly screwed.

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  4. Could it be that the FED is setting up Yellen to be the "fall guy" if rates are raised and the stock market tumbles? Fischer seems more inflationist than Yellen. This might result in a real boomerang market. Down sharply than up again. I agree with RW, very curious.

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