November 5, 2017

Week ending Friday November 3rd 2017 Jerome Powell gets a promotion As expected, President Trump named Jerome Powell as his nominee to replace Janet Yellen in February of next year. This is one of the better outcomes that was on the table, and although we would have preferred one of the academic economists who talks about nominal income level targeting, none of them were politically positioned for the job. Powell has tended to be on the right side of issues since he joined the Fed in 2012, and should breeze through Senate confirmation. The best thing about Powell is not…...

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Jerome Powell´s inheritance

First let´s look at Yellen´s tenure. This was the first time since 1951 that a Fed Chairperson that completed his first term was not appointed for a second stint. It was also the first time during the same period that a Fed Chair did not preside over a recession in his first term. For the first time, also, unemployment only decreased. Inflation remained low as it had for the past 25 years. One could conclude that Janet Yellen had the most successful first term as Fed Chair in the post war period…but didn´t get reappointed! Note, however, that Yellen´s tenure…...

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