Headline:
Warsh = Catalyst For Necessary Reform.
Yellen = Almost Certainly Gone.
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Last November Most Of The Focus In The United States = The U.S. Presidential Election.
Of Course…The Most Powerful Political Position On The Globe Was Up For Grabs And The National Populace Was Enthralled…Even Obsessed With The Outcome. And Now…It Is President Donny T.
However An Equally [If Not More] Powerful Role Is Currently Poised For Change…And, Of Course, Most Of The U.S. Electorate Could Not Care Any Less.
This Position, However, Merely Needs To Be Appointed…Rather Than Elected = The Chair of The United States Federal Reserve.
The Chair’s Global Monetary Powers = Staggering…Presiding Over The Planet’s Reserve Currency and Setting A Benchmark Value For Global Interest Rates.
More Importantly, There Is A Current Opportunity To Reset/Reshape The Functions/Principles of The Federal Reserve…Many of Which Have Greatly Bulged Since The 2008/2009 Capital Markets Bust.
The Most Controversially Executed Powers [among many] = Sovereign Debt Monetization + Quantitative Easing…Both Resulting In Remarkable Price Distortions Across Almost All Global Capital Markets…For Close To A Decade.
Donny T. Gets To Select Whomever He Desires…Congress Will Then Rubber Stamp Almost Any Reasonable Selection.
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The Candidates…In Order of Likelihood =
- Gary Cohn = Current Economic Advisor To Donny T. + Former President/COO at Goldman Sachs.
- Janet Yellen = Current Federal Reserve Chair + Career Academic/Bureaucrat…Ideological Clone of Prior Fed Chair Ben Bernanke.
- Kevin Warsh = Current Fellow At Hoover Institute/Stanford + Former Federal Reserve Board Member + Former Morgan Stanley Investment Banker.
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It Is Extremely Difficult To Imagine That Any Of The Three Would Decline An Offer To Chair The Federal Reserve = Too Much Influence + Power To Refuse.
Cohn Seems To Be Surprisingly Ambivalent About A Possible Appointment. However, He Could Easily Handle The Position + Would Be Infinitely Preferable To Yellen.
It Seems That Yellen Would Accept Another Term But Is Resigned To The Idea She Will Likely Not Be Re-Appointed [despite Donny T’s recently complimentary comments after verbally eviscerating her during the U.S. Presidential campaign].
As For Warsh…He Is Clearly The Most Motivated Candidate…And If Successfully Appointed/Confirmed Would Likely Bring An Entirely New Intellectual/Market Savvy Imprint To The FOMC [Federal Open Market Committee]…Maybe Even Revolutionize It?
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Warsh Has Been An Eloquently Outspoken Critic of Federal Reserve Policy/Tactics…Since Leaving The Fed in 2011.
I Encourage All to Review/Read His Position Papers Listed On His Hoover Institution Web Page. Collectively They Are Specific/Striking With Regard To A New Paradigm In Federal Reserve Function/Policy.
Furthermore, His Tough Appraisals Are Properly Balanced With Pragamatic/Optimistic Ideas For Reform and Strong Doses of Humility. http://www.hoover.org/profiles/kevin-warsh
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It Is Also Important To Note Warsh’s Relative Youth.
He Is Just 47 Years Old…But Is Not Inexperienced As He Previously Served As A Federal Reserve Governor Beginning In 2006 At The Age Of 35.
He Exited His Position After Serving Just 5 Years Of A 12 Year Term. So, It Seems, He Experienced The Inner Machinations + Workings Of The Rigid Institution And Then Politely Excused Himself.
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It Is Clear That The Atrophied/Legacy “Group-Think” At The Federal Reserve Could Utilize Some Fresh + Contemporary Energy. Warsh Could Provide That.
A New Generation Of Leadership For A New Generation Of Policy.
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Finally, It Is No Accident That Warsh Is In The Enviable Position of Consideration.
It Appears He Has Worked Diligently To Achieve His Successes. He Holds The Requisite Ivy League Education + He Adds Real Financial Market Experiences From His Days At Morgan Stanley. Plus, He Holds A Degree In Law and Serves On The Board of Directors at UPS.
He Also Seems To Have An Ally In Formerly High Powered + Still Very Well Connected/Influential Hedge Fund Manager Stanley Druckenmiller As Witnessed By Several Co-Authored WSJ Op-Ed Pieces From June 2014. And He Is Married To An Estee Lauder Heiress.
Despite These Extravagances Of Success Warsh Is Aggressively Pushing The Envelope For Central Bank Reforms…That Naturally Encounter The Status-Quo’s Stiff Opposition. It Appears To Be A Well Mannered Intellectual Battle.
Warsh Even Delivered A Strongly Worded Commentary At The Central Bank Lions Den [Bank for International Settlements] in Basel, Switzerland Boldly Titled = “Reform or Perish”...https://www.bis.org/publ/bppdf/bispap92.pdf.
The Global Monetary Stakes Are That Dramatic…The Title Is Apt.
Article by Global Slant
