A Rogue and Incompetent Fed

We have seen various Fed announcements before, like Greenspan, Bernanke, Yellen et al. We surely want the Fed to be an independent institution, not affected by politics or short term stock market swings and making decisions at the macro level. Even though President Trump is more vocal on Twitter publicly admonishing Fed and others, its not relatively new that Presidents do try to influence various institutions and it is incumbent on the heads of those institutions to be cognizant of facts and experience and accordingly act in the best interest of the nation.

Well that was past. Fed Powell is one of the richest Fed Chairmen of all times. He is worth more than 100 million. He has mostly been in business and lacks the academeics a Fed chairman mostly needs. Not surprisingly therefore he is proving to be one of the worst chairmen we have had. He is also very thin skinned. He is affected heavily by politics and we could see it all over his face when he came to the podium on Wednesday Dec 19th. He tried to show his bravado that he is not affected by politics or by the stock market, but in reality he was saying it all like a defiant 18 yr old.

The Stock Market being the mirror of the future and the present reacted wildly. Everyone knows we have a trade war going on. A realistic Fed would act as a calming voice in this situation and try to keep status quo until things are clearer, while promoting the fact that the economy is great, but we should wait for more clarity before we make money supply tighter and rolling back the balance sheet quickly. One could actually see the stock market barometer S&P drop at every single word he spoke.

Powell is simply incompetent to be a Fed Chairman.


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