Did Trump Just Start the Next Recession?
Did Trump Just Start the Next Recession? by Chad Shoop – Banyan Hill
I’m a stickler for going to the right guys to get the job done.
I go to the dentist to get my teeth cleaned.
When my kids are sick, I rush them to a qualified doctor.
If I want my taxes done, I go to an accountant.
I think you get the point.
They’re professionals for a reason, and they do that job every day.
I wouldn’t take my kids to the insurance rep down the street asking him to diagnose their illness.
It doesn’t make sense.
And when it comes to arguably the second most important position in our economy — the Federal Reserve chair — you would think it would be a good idea to stick to that theme.
Almost all Fed chairs have been economists.
But the next named chairman of the Fed isn’t an economist — and that could be disastrous for our economy.
A Curveball for Policy
Last week, President Donald Trump nominated Jerome Powell as the next Fed chairman.
He would replace Janet Yellen, who has been head of the Fed since 2014.
Powell was appointed to the board of the Fed in 2012 by President Barack Obama, so this isn’t a political issue with the appointment, nor should it be.
The Fed is supposed to be an independent institution, operating outside of the political parties in the government and focusing on its dual mandate: maximum employment and stable prices.
Many Fed watchers see this nomination as continuing the road map Yellen laid out, meaning that we should see gradual and planned rate increases going forward.
But Powell could also be a curveball for policy.
He wouldn’t be your typical Fed chair — his background isn’t in economics.
In fact, he would be the first noneconomist Fed chair since the 1970s — and that may be a history lesson we want to avoid repeating, as I’ll explain in a moment.