Fed s Taper Timing Runs Into China s Crackdown, Debt-Ceiling Politics bloombergquint.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from bloombergquint.com Daily Mail and Mail on Sunday newspapers.
The decision by President Nixon to close the gold window shattered the international monetary system that had formed a key foundation of the postwar capitalist order.
by Tyler Durden
Submitted by Joseph Carson, former chief economist at Alliance Bernstein
Federal Reserve Chair Jerome Powell in 2021 faces a similar challenge that former Fed Chair Alan Greenspan faced in 1994. Fast growth as the economy re-opened triggered substantial cyclical inflation pressures, somewhat similar to 1994 when headwinds from tight credit and balance sheets strains faded. Yet, Powell s policy response to the inflation challenges has been markedly different than Greenspan s.
Powell has employed a hands-off approach, maintaining the overly accommodative monetary policy stance, thinking the inflation surge will prove to be temporary. The inflation results for all of 2021 are not in, but consumer price inflation in the first six months (3.6%) exceeded what occurred in the twelve months of 1994 (2.6%).
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As the White House weighs the potential renomination of Jerome Powell as chair of the Federal Reserve, officials are discussing the use of openings on the board to reshape the central bank to closer align with administration priorities such as inequality and tighter banking regulations, according to people familiar with the matter.
President Joe Biden currently has one vacant Fed governor seat to fill and could potentially replace three more top central bank officials in the coming year, depending on how much he wants to revamp the Fed’s leadership. Powell and Fed vice chairs Richard Clarida and Randal Quarles all have terms that will expire in coming months.
Biden Eyes Imprint on Fed Board as Decision on Powell Approaches bnnbloomberg.ca - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from bnnbloomberg.ca Daily Mail and Mail on Sunday newspapers.