Should Biden keep Fed chair Jerome Powell?

Discussion in 'Political Opinions & Beliefs' started by Quantum Nerd, Dec 1, 2020.

  1. Quantum Nerd

    Quantum Nerd Well-Known Member

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    Should Biden keep Fed chair Jerome Powell?

    What's your opinion on the above question? Early indications are that he may:

    https://www.ai-cio.com/news/jerome-powell-may-get-extended-federal-reserve-chief-say-analysts/

    "Powell is well-known and well-liked among senators in both parties. He “would be the nominee of least resistance,” if Republicans do keep control of the Senate, Cornerstone Macro analyst Roberto Perli wrote recently. That will be determined by two runoff elections for Georgia Senate seats in January."

    My feeling: Powell has shown himself to not be a yes man. He has repeatedly stood up against pressure from Trump. That's exactly what we need in such an important position, somebody who looks at the data instead of the politics.

    One thing is pretty certain, however. After four years of lobbying for low interest rates by Trump and fans, they'll revert back to the pre-Trump opinion that low interest rates are killing the US. Wait and see,
     
  2. Pants

    Pants Well-Known Member

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    Continuity is not a bad thing, particularly if the current seat holder is the right person for the job. To replace simply because one can is the height of 'politics' to me.
     
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  3. garyd

    garyd Well-Known Member

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    If low interest rates are bad why did they stayed low through out throughout the majority of the 21st century? By the way interest rates are going to stay low until Dems quit using the Carona virus to beat up people the don't like. No pointing in applying the breaks to an economy that already stopped.
     
    Last edited: Dec 1, 2020
  4. fmw

    fmw Well-Known Member

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    Likeability is not a qualification for the job. If he has done his job well then they should consider keeping him.
     
  5. Quantum Nerd

    Quantum Nerd Well-Known Member

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    Interest rates are low because too much money is chasing safe return from too few qualified borrowers. Supply and demand. It's the end game of debt-driven expansions.

    In any case, the Fed can only set short term interest rates. In the long terms, they will go to what the market demands.
     
  6. garyd

    garyd Well-Known Member

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    Which for the last twenty years has been low interest rates. Markets always want low interest rates because it lowers costs of doing business. They want lower taxes and less rules and regulations for the same reason.
     
  7. Quantum Nerd

    Quantum Nerd Well-Known Member

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    By doing so, business is digging their own grave. The Mesopotamians already knew that there will always be a cycle of buildup of debt, leading to stalling of the economy, because creditors run out of debtors, followed by debt cancellation. Super-low interest rates indicate that we are nearing the peak of thiscycle. Nothing the Fed can do about it.
     
  8. garyd

    garyd Well-Known Member

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    Sorry but that's bogus. The biggest borrowers are generally businesses themselves far and away. That is, of course, after the government. The problem isn't debt it's insolvency. That's why Nancy wants to shovel boat loads of cash under the Carona relief package toward corrupt blue cities, where the all to cordial relations between government worker unions and politicians has saddled those cities with pension plans and salary structures that will result in bankruptcy not too far down the road. Note it's also why the idiotic defund the police movement made so much initial head way. It allowed cash strapped blue cities, to make cuts to services at the expense if public safety under the camouflage of political correctness.
     
    Last edited: Dec 1, 2020
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  9. Ronstar

    Ronstar Well-Known Member Past Donor

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    Anyone in the Trump administration who is doing a good job and has a Outlook that is acceptable to biden's vision should be kept on there's no need reason to let them go

    That's how adult presidents act
     
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  10. FreshAir

    FreshAir Well-Known Member Past Donor

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    Trump did not raise interest rates during what he said was the greatest economy ever, so no, do not see them raising the rates now

    and I do not see any slow down in the fed dumping money into the economy like they did under Trump either
     
  11. garyd

    garyd Well-Known Member

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    They've been doing that since Bush QE goes back almost a decade and a half and it had largely stopped under Trump until Carona virus.
     
  12. FreshAir

    FreshAir Well-Known Member Past Donor

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    no it never stopped under Trump, and it should not have as the economy would have crashed without it, it's the only thing stopping the house of cards from coming down

    if congress doesn't pass another stimulus soon, we also may see 1929 sooner rather than later

    the stock market is doing fine with the fed, the people and small businesses need another stimulus
     
    Last edited: Dec 1, 2020
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  13. garyd

    garyd Well-Known Member

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    Wrong and right yes another stylus is needed. The continuing stupidity of the lock down response to Covid guaranteed that. QE stopped and Powell was talking about raising rates beginning with the end of Trump's second year. I'm not sure it ever restarted or if it should. If you're not careful with all that priming you can flood the engine.
     
  14. FreshAir

    FreshAir Well-Known Member Past Donor

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    yes, and before covid Trump was asking them to lower rates, the economy was hurting before covid, ironically covid my have saved us from the short term crash, but it's still comming
     
  15. garyd

    garyd Well-Known Member

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    It wasnt hurting. You raise rates to head off inflation. Trump pointed out rightfully that there wasn't any inflation to head off. Powell looking at the data agreed and so the rates remained as they were. Once covid showed up and we decided that killing the economy was better than letting people die, (note killing the economy also kills people as we will see once we look at this disaster with eyes untainted by politics) the fed lowered interest rates again not that it helped. Note lowering interest rates when no one is borrowing money is not exactly a major boon.
     
  16. FreshAir

    FreshAir Well-Known Member Past Donor

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    you raise rates back to normal when no longer needed, rates are almost zero, that is not the norm and shoudl of been returned to norm if the economy was doign great, which is was not, if it was, the fed would not of needed to dump so many $$$ into it to keep it afloat precovid

    we agree the rates should have remained low, and the fed did good, the economy was hurting and needed the help of the fed
     
    Last edited: Dec 1, 2020

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