Monday, February 19, 2018

New Fed Chairman Powell Taps Two Money Printers as Advisers

Jay Powell
Federal Reserve Chairman Jerome Powell has tapped two Keynesian specialists to serve as senior advisers, reports The Wall Street Journal.

In other words,  we get the first indication that Powell, a lawyer, will rely on theories that have led the Fed to a string of failure including 18 recession since the start of the Fed and a price level increase over the same period in excess of 2,500%.

Jon Faust, a professor of economics at Johns Hopkins University, will return to the Fed to advise  Powell on a part-time basis. He served as a senior adviser to Powell’s predecessors, Ben Bernanke (who ushered in the 2008 financial crisis) and Janet Yellen.

Faust will spend one day a week at the Fed until completing his teaching duties for the current academic term. His role after that hasn’t been determined, according to WSJ.

Antulio Bomfim, an economist in the Fed’s monetary affairs division, also will serve Powell as a special adviser. Bomfim served as an economist at the Fed from 1992 to 2003 and returned to the central bank as a senior adviser in 2016.

These guys have no clue what is ahead for them. The years ahead will not be the same as the smooth ride years of Yellen. And they have no clue how to deal with crisis. Incredibly ,they are even musing now about the desirability of greater than 2% price inflation. We are headed far beyond 2% price inflation without any help from these characters.


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