And How Many Divisions Does the Federal Reserve Have?

By: Friday October 4, 2013 8:05 am

Mark A. Patterson, senior fellow at the Center for American Progress, has made what I consider to be one of the worst arguments against the minting a trillion dollar platinum coin to deal with the debt ceiling. From Wonkblog: The coin is a clever, nifty idea but it has problems. The one that gets overlooked [...]

Cornyn Will Oppose Larry Summers for Fed Chair

By: Friday September 13, 2013 7:45 am

President Obama still seems fairly determined to pick his close friend Larry Summers to run the Federal Reserve but the path to his Senate confirmation has just gotten a bit trickier. John Cornyn, the second highest ranking Senate Republicans, now says he will oppose Summers. From the Huffington Post: John Cornyn, the number two Republican [...]

Why Is No One Pushing Larry Summers for Vice Chair?

By: Wednesday August 7, 2013 8:14 am

The promoters of Larry Summers for Federal Reserve Chair argue that his unique intelligence, unusual insights, and history of crisis management would make him a valuable addition to the Federal Reserve. Yet even his strongest defenders will admit he is clearly not the most experienced candidate. Unlike Vice Chair Janet Yellen, Summers has never served [...]

Sunstein Pretends Not to Understand Cronyism

By: Tuesday August 6, 2013 11:01 am

Cass Sunstein is apparently going to pretend he doesn’t understand cronyism to defend Larry Summers. From Sunstein’s op-ed in Bloomberg: A lot of public discussion takes place before the president nominates a new Federal Reserve Board chairman. This time, that discussion has gotten unusually heated. Continuing economic difficulties are one reason. Another is that Lawrence Summers, a top candidate, is [...]

Not Even Wall Street Wants Larry Summers at the Fed

By: Monday July 29, 2013 7:59 am

One of the few potential justifications for President Obama picking Larry Summers to head the Federal Reserve, despite the strong opposition to him from many liberals, was that Wall Street preferred him. According to a CNBC poll, though, this is not the case. Summers is even less popular with Wall Street than he is with [...]

Senate Democrats Push Janet Yellen Over Larry Summers to Lead the Federal Reserve

By: Friday July 26, 2013 10:40 am

The Larry Summers trial balloon is behaving as if it was filled with lead. Not only have many liberal and economic bloggers strongly criticized the prospect of President Obama nominating Summers to run the Federal Reserve, but several prominent Democrats are actively lobbying for Obama to choose Vice Chair Janet Yellen as the next Chairperson [...]

Obama Must Just Really Like Larry Summers

By: Thursday July 25, 2013 7:14 am

As best as I can tell the only reason Larry Summers may be President Obama’s top choice to head the Federal Reserve is that Obama personally likes him and Summers doesn’t suffer from the affliction of having two X chromosomes. Summers fails all of the main tests for what makes a good pick. Summers is [...]

“Acting” Director Ed DeMarco Shows Why Any Administration Needs to Get Its Own People In Place

By: Tuesday July 31, 2012 1:29 pm

President Obama wants to try principal reduction as a way to help home owners and the economy. The problem for Obama is Ed DeMarco, acting director of the Federal Housing Finance Agency, which would be responsible for implementing a key part of this policy, doesn’t like principal reduction.  As acting director of FHFA, DeMarco has [...]

Imagine If the Unemployed Helped Run the Fed

By: Tuesday May 3, 2011 3:46 pm

Imagine if five of the 12 voting members of the Federal Open Market Committee were selected exclusively by unemployed Americans, instead of the current system of having them chosen by rich bank executives. This could be done. Currently five of the voting members on the FOMC, which sets monetary policy, are presidents of one of [...]

Independence from Whom? Federal Reserve Design Breeds Bad Policy

By: Friday April 29, 2011 5:30 am

There seems to be a broad acknowledgement that the Federal Reserve has made the terrible decision to randomly change their goals by making their new top priority maintaining a one-percent inflation target, instead of the old understanding, two-percent inflation, or trying to achieve full employment, despite 8.8 percent official unemployment. I will let Paul Krugman [...]