Central Bankers Now Plotting Government Subversion?
Central Bankers Now Plotting Government Subversion? by David Haggith for The Great Recession
Two weeks ago a former Federal Reserve board member and bank president, William Dudley, wrote an editorial that encouraged the Fed use its powers to defeat Donald Trump’s second bid for the US presidency. I don’t recall choosing presidents as being listed in the Fed’s two mandates — controlling inflation while maximizing employment.
For an organization that has been speaking a lot lately about the importance of its independence from politics, that was the most overtly political statement I’ve heard from a central banker, albeit a former central banker, but one with a lot of influence.
Readers here know from my last article that I’m critical of Trump, but longer-term readers know I was also critical of Obama and have always been critical of the Fed. Since I built my readership during the Obama era, a lot of my own readers may have been Obama haters who were glad I criticized the things his administration did but who are no longer so glad when I turn that criticism on Trump.
Now, during the Trump years, that same criticism has cost me literally thousands of lost readers, and my last article which lampooned president Trump cost me a few patrons as well, I figured it would, but I’m interested in truth about the economy, what is working and what is not, what will work and what will not work. So, I remain an equal-opportunity critic as my site has always claimed.
Now I’m turning that critical lens back on the Fed because I’m also fair in being supportive of Trump when due, such as when I wrote after Trump’s inauguration an exposé on the truly fake news belittling the size of his inauguration, which actually had a hyuge audience. As someone who seeks to be as objective as possible about each party, I feel compelled to point out how out-of-character it was for a former board member and reserve bank president, to publicly advocate for the Fed to no longer make policy decisions based on data and what is good for the country but on what will most likely unseat the currently seated president.
So, fo once, I even have to agree with Krazy Kudlow when he almost drunkenly criticizes William Dudley, saying, “That is the most politicized statement I have ever heard”: