Can a man with a checkered past be trusted to lead the Fed? Powell would be the first Fed Chairman in over 30 years without a degree in economics. His formal training is in law. Apparently, economists are not to be trusted. Newsflash: Neither are liberals, especially "moderate" ones. Who is Jerome Powell?
Powell may not be an economist, but he certainly knows his way around an investment bank! Before being picked by Obama in 2012 to be a Fed governor, he made a fortune with the Carlyle group, the world's largest private equity firm. These two facts pose big problems!
As an Obama appointee to the Federal Reserve, that alone itself should disqualify him.
The whole point of the election was to break from the failed policies of the past. Not to bring them along with us.
Secondly, Powell's links to the shady Carlyle Group raise a big red flag!
The firm was caught in a shady "pay-to-play" scheme
to get pension fund business it never would have otherwise, and paid tens of millions of dollars in fines because of it. The Carlyle Group also lost more than $100 million on a fictional Chinese Forest investment!
And Powell's old investment firm continues to invest in other Chinese ventures, seemingly undaunted by the rampant fraud in the Chinese equity markets. Meanwhile, Powell's net worth is estimate to be between over 112 million dollars.
And third, the Carlyle Group is deeply connected to THE ESTABLISHMENT at the very highest places, including... former SEC Chairman Arthur Levitt, former UK Prime Minister John Major and former Clinton White House Chief of Staff, Mack McLarty among others. Most - if not all of the leaders of the Carlyle Group - reject the very idea of making America great again!With such legal, ethical and ideological marks against him! Is Jerome Powell really fit to lead the Federal Reserve? The answer, of course, is No. He shouldn't even be in the room. But yet, there he is. And here's what's strange, they've called Powell 'a moderate' in so many articles, it feels like a talking point. The question is, 'moderate' compared to who? Is he a moderately shady investment banker? It's much smarter to just look at what Powell's done, rather than what some people choose to call him! Also of note, more than one Fed Chair has used policy to poison a president's reelection chances. Do we need another Yellen at the Fed?
There must be a few good reasons for going with Powell; For one, he isn't Janet Yellen, so there's that! Nor is he Ben Bernanke, so that's another point in his favor. But he did support Yellen's monetary policy;¦ And is likely to follow a similar path. As it is, with up to four of the seven governors' seats open plus the chairmanship, the Fed is open to change like never before
. The board may become more conservative, but will Powell behave? He is
a moderate, in case you didn't know. The Mnuchin Maneuver
One other very disturbing factor is Treasury Secretary Steve Mnuchi's growing power in the administration. He's good friends with Powell and is"pushing hard" for him as Fed Chair;
Why? For one, it looks like Mnuchin himself wants to influence Fed policy... Meaning that he may not want Powell to make big policy changes. That should worry conservatives in the administration and across the country. Because Steve Mnuchin, a former Goldman Sachs banker, has never been a conservative far from it. He is, in fact, a big democrat donor, worked for George Soros
and, many suspect, is much more liberal than he lets on. His ability to maneuver through the Trump administration is another red flag, As is the fact that the left has successfully planted themselves in the policymaking inner circle. What would a Powell-led Federal Reserve mean?
Powell is a globalist, not a typical America-firster; So why is he "the one"? What does Mnuchin know that nobody else does? The growing power of this liberal column in the administration could wreak havoc in policy. That's why real conservatives are not happy with the choice; They prefer Stanford economist John B. Taylor, who has been a clear critic of the Fed's monetary policy
. But, it seems that Powell is the man of the hour; What would a Powell-led Fed mean for the economy and the dollar? Does he agree on deregulating Wall Street by gutting Dodd-Frank? Will he loose or lose - the Volker Rule? We don' know. The good news is that the Fed's vice chair in charge of regulation is Randy Quarles, a confirmed deregulator, so it may not matter. What's Powel's view on the pace of raising interest rates? Just as key, what will he do if the economy slips? The answer to these questions is, "we don't know." In the past, Powell has supported Yellen's monetary policy
and agreed with her slow pace in raising interest rates; But what he may do next is not known. If the past is any indicator, Powell may not be the agent of change in the Fed than we'd like to see; It's possible he could run the FED exactly how he ran the ultra shadowy Carlyle Group. It looks to be exactly what Treasury Secretary Mnuchin wants. Which brings us back to the question, "Why Powell?" Only his biggest fan, Democrat Steve Mnuchin may have the answer...