Goodbye Janet, hello Jerome. Today, the FOMC unanimously selected Jerome H. Powell to serve as its Chairman, effective February 3, 2018.
This came about because Trump did not reappoint Yellen.
Under her watch, as Chair, the stock market hit record highs, there was no recession, and unemployment crashed.
Accolades Pour In
Business Insider says Janet Yellen will be Sorely Missed. “Yellen’s departure from the Fed is a huge loss for anyone who cares about unemployment.”
Sam Bell ay Politico says the Dismissal of Yellen is a Tragedy. “By any measure, she was one of the most successful Fed chairs in history. Why didn’t Trump keep her around?”
Ya gotta love Bell’s last line “And hopefully Americans will remember Yellen’s admonition—‘keep refilling the punch bowl until the guests have all arrived.‘”
Hold the Champagne
Hold the champagne, the praise, and the truffles.
While it’s true, unemployment crashed under Yellen, it’s also true the Fed sponsored the biggest stock market bubble in history on her watch.
Few see that now, just as few saw the housing bubble fueled by Greenspan and Bernanke. And Yellen was part of the housing bubble-blowing affair too, just not as the Chair.
Not only did Yellen “keep refilling the punch bowl until the guests arrived,” she kept refilling the punch bowl long after every guest was drunk.
There’s quite a bit of sobering up to do.
Few will be singing accolades for Yellen when the realization hits that the Fed blew it again.
Mike “Mish” Shedlock
http://obatperangsangmanjur.net/
People have a very short timeframe. Very few people will attribute a bust to Yellen’s bubble.
FED chair is an impossible job. Always blowing bubbles because no human can possibly set interest rates. Never have enough information or understanding. A thankless job indeed and one destined to end up on the rocks.
Even The Maestro Alan Greenspan fell from grace…. (https://www.investmentweek.co.uk/investment-week/news/1392266/greenspan-fall-grace)… Only thing is it takes time…
“Accolades Pour In” Alan Greenspan was called The Maestro, until the housing bubble he facilitated with ZERO lending standards, burst and deflated. he is no longer considered The Maestro. The same fate awaits Yellen.
Yellen’s story is definitely not written. Alan Greenspan: “There are two bubbles. We have a stock market bubble and a bond market bubble. At the end of the day, the bond bubble will be the big issue.” These bubbles have occurred on Yellen’s watch.
obama regime was a turning point,where propaganda and bs drives economic policy,unemployment “rate” will never be high again (ever),inflation “rate” will never rise (ever)states will soon be forced into default if the market corrects even 10%,,everything comin out of dc and the msm is filtered bs
Cause & effect correlations can be deceiving. Timing seems to have more effect than anything. I predict Yellen got lucky with her timing as the Chairperson, and the next Chair will unluckily get the blame when the market inevitably goes down again.
Damn. They didn’t invite me. How’d that happen?
They say the definition of insanity is doing the same thing over and over again and expecting a different result. Hey Mish, we have a gaggle of Fed economists and pundits meeting here in Dallas next month. They’re going to pontificate on the evidence of a housing bubble. Should be a real riot..https://aaronlayman.com/2018/01/federal-reserve-seeds-next-housing-downturn/