{"id":55262,"date":"2020-10-10T07:09:48","date_gmt":"2020-10-10T12:09:48","guid":{"rendered":"https:\/\/olduvai.ca\/?p=55262"},"modified":"2020-10-10T07:09:48","modified_gmt":"2020-10-10T12:09:48","slug":"the-hazards-of-4-more-years-of-jerome-powell","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=55262","title":{"rendered":"The Hazards of 4 More Years of Jerome Powell"},"content":{"rendered":"
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The Hazards of 4 More Years of Jerome Powell<\/a><\/h1>\n<\/div>\n<\/div>\n<\/section>\n
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Whether Trump or Biden is elected in November, they will have to decide whether or not to appoint Federal Reserve Chair Jerome Powell to another term.<\/p>\n

And if he is appointed again, the way he continues to handle the continuing ripple effects of the COVID-19 \u201cshutdown\u201d economy will be\u00a0critical.<\/em><\/p>\n

So let\u2019s examine why the decision to reappoint him is important, then take a quick tour of some of Powell\u2019s\u00a0recent<\/a>\u00a0performance.<\/p>\n

A\u00a0piece<\/a>\u00a0from Paul R. La Monica provides a take on the importance of Powell\u2019s re-appointment, beginning with the response to the market\u2019s plummet earlier this year:<\/p>\n

The Fed quickly lowered rates to zero in March and has since launched trillions of dollars worth of lending programs\u2026 Powell\u2019s swift actions have won him praise from many economists and investing experts on Wall Street.<\/p><\/blockquote>\n

\u201cPowell should get a second term if he wants it. He deserves credit for the speed and magnitude of the Fed\u2019s response to Covid-19,\u201d\u00a0said<\/a>\u00a0Larry Adam, chief investment officer of Raymond James.<\/p>\n

Mr. Adam and the article are correct on one point. The Powell-authorized \u201cmoon shot<\/a>\u201d in response to a dramatic market\u00a0drop<\/a>\u00a0was certainly a fast move.<\/p>\n

George Calhoun, professor of quantitative finance at the Stevens Institute of Technology,\u00a0agreed<\/a>\u00a0with Powell\u2019s quick decision to print trillions:<\/p>\n

When the crisis hit, Powell\u00a0went all out and opened the spigots<\/strong>. I\u2019m not sure what rationale would be to have someone totally different at the Fed. Monetary policy has been effective.<\/p><\/blockquote>\n

Any person in Powell\u2019s position could have made the same call, of course. We just have to hope that the long-term ripple effects don\u2019t eventually reveal that his reaction was too much, too fast, or perhaps unnecessary.<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Hazards of 4 More Years of Jerome Powell Whether Trump or Biden is elected in November, they will have to decide whether or not to appoint Federal Reserve Chair Jerome Powell to another term. And if he is appointed again, the way he continues to handle the continuing ripple effects of the COVID-19 \u201cshutdown\u201d […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[18769,7783,303,426,16888,538,3650],"class_list":["post-55262","post","type-post","status-publish","format-standard","hentry","category-economics","tag-birch-gold-group","tag-credit-expansion","tag-fed","tag-inflation","tag-jerome-powell","tag-money-printing","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/55262","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=55262"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/55262\/revisions"}],"predecessor-version":[{"id":55263,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/55262\/revisions\/55263"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=55262"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=55262"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=55262"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}