John Taylor’s appointment seems unlikely

It was great to write last week about the potential appointment of John Taylor as the next Chairman of the Federal Reserve, but that now appears unlikely. After meeting with the current Fed chair, the President declared there are five finalists and that he likes all five of them. Both Janet Yellen and John Taylor were on that short list.

It’s hard to understand how anyone with a clear position on monetary policy would include both on the same list of finalists. Discerning Trump’s views on interest rates and the value of the dollar have been even more challenging than making sense of his foreign policy.

Also on this list is a bona fide moderate. Jerome Powell (pictured above) stands as a centrist choice between the inflation hawks like Taylor and doves like Yellen. It’s now being reported that Powell has emerged as a favorite.

It would appear that, in this policy area, no strong consensus among Republicans exists to prompt the appointment of a conservative in the same way there is with judicial appointments.

In the Obama years, there was a strong Republican position on FOMC policy. The GOP wanted fewer dollars printed and Democrats wanted more. Like concern with the deficit, this appears to have largely gone out the window. Indeed those tend to go together when we increasingly rely upon the Federal Reserve to finance our deficit.

Eric Shierman lives in Salem and is the author of A Brief History of Political Cultural Change

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Posted by at 05:00 | Posted in Federal Reserve | 2 Comments |Email This Post Email This Post |Print This Post Print This Post
  • Alecis

    yes, it is Great post. http://www.pornude.org

  • Bob Clark

    We’ve had nearly ten years of easy money, printed monies allowing for half a trillion dollars in annual federal deficit spending. The macroeconomic cost doesn’t appear very costly. In fact, inflation isn’t much different than it was ten years ago. There’s been so much slack in the global economy, easy money actually might be the most appropriate call. If Trump can deregulate such as greasing the skids for continued stable energy prices, then easy money might not be so costly. As such, I think we should keep Yellen if she is willing to consider deregulation of financial institutions.
    One thing also. Many state and local government are in such debt inflation is their friend by reducing the real debt obligation.
    Idealism…balanced federal budget…is one thing. But when you meet reality, you apply theory less strictly.

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