Should Jerome Powell Fear RFK Jr. in the White House?

Governor Jerome H. Powell discusses monetary policy accommodation, risk-taking, and spillovers during the policy panel on monetary policy spillovers and cooperation in a global economy: GP_IF_111414_1705

In David Stockman’s Contra Corner, David Stockman explains that RFK Jr. should fire Jerome Powell on the first day of his presidency if elected. Stockman writes:

RFK has pointedly announced that he will pardon Deep State prisoner Julian Assange on day #1. That sent a powerful message that the destructive rule of Washington’s bipartisan War Party will be brought to an abrupt end if he is elected President.

Likewise, RFK should announce an intent to stop dead in its tracks the Fed’s egregious servitude to Wall Street and the one percenters who luxuriate in the massive inflation of financial assets it enables. Pledging to hand ex-private equity impresario, Jay Powell, his walking papers on January 20, 2025, would give forceful expression to that intent.

At the substantive level, three policy markers could further convey that a sweeping regime change at the nation’s central bank is coming down the pike—changes that would liberate the Fed from the grip of Wall Street speculators and Washington spenders alike:

• Enactment of an extended moratorium on any further Fed purchases of US Treasury or Federally guaranteed debt.
• An end to Fed bailouts, interest rate subsidies, stock market puts and any other open market manipulations on Wall Street.
• Return to a discount window-based modus operandi as provided by the Fed’s original authors, where member banks needing liquidity can get Fed advances against sound commercial collateral at market rates of interest plus a penalty spread for using the public credit.

These measures would kill two very bad birds with one stone. Without the prospect of the Fed’s false bid for government debt, bond yields would rise sharply and the warmongers and big spenders on both ends of Pennsylvania Avenue would finally be faced with the true economic cost of their profligacy.

Read more here.