This morning, US government criticism of both Federal Reserve Chair Powell and the institution itself has broadened to include "mission creep" and the effectiveness of other officials.
The developments of the last few days reinforce my view:
If Chair Powell's objective is to safeguard the Fed's operational autonomy (which I deem vital), then he should resign.
I recognize this isn't the consensus view, which favors him staying until the end of his tenure in May. Nor is it a first best, which is simply not attainable. Yet, it's better than what is playing out now – growing and broadening threats to Fed independence – and will undoubtedly increase should he remain in office.
As to market reaction, most of the frequently mentioned candidates to replace Chair Powell would be able to calm any potential market jitters.
#economy #federalreserve #markets
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Join me at 12:30 p.m. today for a conversation with MarketWatch Markets Editor
@mdecambre. We'll discuss the Apple, Microsoft, and, of course, the Fed. https://t.co/MAnzRpURLo
If you hurry, you can see what @jackhough is doing in the helmet. Barron’s Roundtable is on @FoxBusiness right now. Re-airing tonight at 11:30 ET, Sat at 10 & 11:30am; Sun at 7, 10 & 11:30am. @carletonenglish @ben_levisohn
With Bitcoin getting crushed, here's the link to my conversation with @bryanroutledge and @StocktonKatie about investing in cryptocurrencies. https://t.co/PbtV8uctQX