Wednesday, October 4, 2017

Yellen and Kashkari

Two newsbits:

Jared Bernstein - Trump's best move is to reappoint Yellen. He has a very good point:
There’s an interesting way in which a more hawkish Fed chair–and most of the top candidates other than Yellen fit that bill–would be a double whammy for Trump.

First, raising rates would slow growth, which presidents never like. Second, higher rates strengthen the dollar, making our exports less price competitive, which this particular president really wouldn’t like.
So let's see if President Piddles has the sense to reappoint Yellen.

Neel Kashkari - my take on inflation. I didn't understand the appointment of a lower-level functionary with an MBA, but it turns out that Kashkari has the most sense of the lot - probably because he has no economics background, so he falls back on empirics.

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