Wednesday, November 19, 2014

As If the Federal Reserve isn't Bad Enough in It's Current State...

WSJ is warning that lefties want to take over the central bank:
Progressives don’t like independent regional Fed presidents. Federal Reserve Bank of Dallas President Richard Fisher , approaching mandatory retirement, announced last week that he’ll step down in March. Philadelphia Fed President Charles Plosser will retire the same month. Since the two have been stalwart advocates for sound money and economics, unions and their allies want to ensure that their successors aren’t as sensible.

These forces have gathered under something called the Center for Popular Democracy, which includes the AFL-CIO, the teachers unions, the Service Employees International Union and the Working Families Organization. The center is demanding that “members of the public” be included on search committees for the successors to Messrs. Fisher and Plosser...

As for their main substantive gripe, the various progressive outfits wrote in an August letter to current Fed Chair Janet Yellen and other officials “to remind you that the American economy is not working.” That’s something on which everyone can agree, nearly six years into the Obama Presidency.

But the letter’s policy advice is that interest rates should be kept low to boost wages. Since we are also nearly six years into the era of near-zero interest rates along with other Fed efforts to stimulate private economic activity, you’d think even progressives might conclude that the Fed cannot conjure economic opportunity and growth.

If it is one thing lefties have no clue about, it is basic economics. Top Fed officials now include the inflationists Janet Yellen, Stanley Fischer and William Dudley. I can't imagine what a Fed packed with greater inflationists would look like.

This is another reason to keep in mind that the Fed should be abolished and not "reformed." Reform could be extremely dangerous and result in an even more unstable economy than we have now.


  1. Can You Help the Fed Figure Out What Is Wrong With The Recovery™

    Why doesn't the public spend and save more?

    please pass this around because they are in dire need of help...

  2. Let 'em pack it with even bigger morons. That'll hasten the demise of pax amerikana.