Yesterday, former New York Fed president William Dudley wrote a Bloomberg Op-Ed calling Trump’s Reelection a "Threat to the U.S. and Global Economy"
Today, former Fed official Larry Summers blasted Dudley.
Worst Case of Trump Derangement in the Financial World
Least Responsible Statement in Decades
MarketWatch reports Lawrence Summers slams former top Fed official Dudley for essay on Trump
The fallout from former New York Fed President William Dudley’s op-ed on President Donald Trump continued Wednesday with former Treasury Secretary Lawrence Summers saying the column “might be the least-responsible statement by a former financial official in decades.”
Adam Posen, the president of the Peterson Institute for International Economics, and a former central banker at the Bank of England, said Dudley’s column was “horribly mistaken.” “It feeds conspiracy and it was totally irresponsible to talk that way,” he said. Fed officials will likely react by circling the wagons and become disciplined in their speeches, Posen said.
Minneapolis Fed President Neel Kashkari, in an interview with NPR prior to Dudley’s essay, said that when a central bank plays politics “it leads to really bad outcomes over the long run for the economy.
I have been accused of TDS as well. The charge is laughable. I have been an anti-war, free-trade advocate forever. My blasts of Trump have generally been in those areas.
On the positive side, Trump made two good choices for the Supreme Court That's something I highly doubt would have happened had Hillary won. And I also believe she is an even bigger warmonger than Trump.
Hillary was the "genius" behind the assassination of Muammar Al Gaddafi with disastrous consequences for Libya. She supported a no fly zone over Syria which could have led to confrontation with Russia, and she had the backing of John McCain, another rabid warmonger.
Clueless Fed, Clueless Trump
Trump repeated his claim today that the Fed is clueless.
Trump is correct. The Fed blew three consecutive economic bubbles. The third one has not popped yet.
But the one thing worse than having an independent body set monetary policy is having a government strongman take control.
History shows that bad things happen when the latter occurs. The result is often hyperinflation.
Get Rid of the Wizards
I propose we end the Fed and have a 100% gold-backed dollar.
The market can set interest rates, not a group of economic wizards, nor the President, nor Congress.
Mike "Mish" Shedlock