Larry Summers Accuses Dudley of "Trump Derangement Syndrome"

Larry Summers blasts Bill Dudley's column yesterday in which Dudley proclaimed the "Fed Shouldn’t Enable Donald Trump".

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

Comments (20)
No. 1-12
Fulgurite
Fulgurite

The "TDS" accusation from the die-hard Trump supporters is just as primitive as the "you're a nazi" from the left.

It illustrates how society is becoming more and more polarised by people who are either too stupid or entrenched in their political dogmas to rationally look at the facts and debate accordingly.

Tony Bennett
Tony Bennett

That's nice, Larry

Now, about that photo of you and Epstein ...

Webej
Webej

The MSM should be on alert. Meddling in our elections. But then by an agency which has actual effects.

The presidential election cycle has the strongest correlation with recessions/booms of any identifiable variable.

2banana
2banana

Please name all the wars Trump has started in the last three years as POTUS.

Heck, he doesn't even brag he is good at killing people.

"And I also believe she is an even bigger warmonger than Trump."

Matt3
Matt3

On a point Mish made, why can't short term rates be set by the market? This does seem like the best way as the Fed isn't very good at it and politicians surely wouldn't be any better. Mish, can you point to to something on how this might work? with or without 100% gold backing?