If Trump is reelected and continues to be annoyed at Jerome Powell, he would be well advised to elevate Neel Kashkari to the job of Federal Reserve chairman, writes jbarro
Minneapolis Federal Reserve president Neel Kashkari. Photo: John Lamparski/Getty Images Neel Kashkari is glad people are finally listening to him.
Short-term interest rates are set by the Federal Open Market Committee, a body that consists of the seven governors of the Federal Reserve Board, the president of the Federal Reserve Bank of New York, and four rotating members chosen from the presidents of the other 11 Federal Reserve banks. Kashkari does not currently sit on the FOMC, though when he last did, in 2017, he opposed all three rate hikes the FOMC implemented that year.
In his efforts to get the Fed to ease, Trump has floated some ridiculous names as possible Federal Reserve governors. He proposed — but never formally nominated — his sycophantic economic adviser Steve Moore and former fast-food executive and political candidate Herman Cain for the board’s two currently empty seats.
I think part of the answer lies in the Kashkari quote I reproduced earlier: “Since I became president of the Federal Reserve Bank of Minneapolis in January 2016, I have advocated against interest rate increases.” In 2016, the president was a Democrat, and Kashkari favored low interest rates. Then a Republican became president, and he still favored low interest rates.
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