Now that Judy Shelton has passed the first big hurdle to be confirmed as a member of the Fed – passing muster with the Senate Banking Committee by a 13-12 party-line vote – let’s assume that the full Senate will confirm her. While it’s not a slam dunk, Republicans do control the chamber by a 53-47 majority, so even if Mitt Romney votes against her, as he says he will, she’s probably in.
Despite what her many detractors believe – that she has the power all by herself to return the U.S. to the gold standard and direct the Fed to do whatever President Trump wants – that probably won’t happen unless Fed chair Jerome Powell resigns or Trump figures out a way to remove him without triggering a massive global financial panic safely. Even then, it’s a fantasy. So Shelton is probably going to be confirmed, and nobody is going to die as a result.
So let’s turn instead to what a Fed under a President Biden might look like. Luckily, the former vice president has publicly revealed what he has in mind, in a short and concise 110-page press release entitled, “Combating the Climate Crisis and Pursuing Environmental Justice,” the product of a “unity task force” set up by Biden, and former presidential candidate Bernie Sanders, whom I guess wrote most of it. I’ll save you the trouble of pouring through it unless you’re feeling masochistic.
Granted, there’s only a little (fortunately) in the tome that deals with the Fed. Indeed, through the magic of word search, I found that there are only eight references to “Federal Reserve” in the document, but what’s there is enlightening about their thinking. No, there’s nothing in there about Fed monetary policy, I suppose to respect the Fed’s independence. Continue reading "What To Expect From A Biden (And Bernie) Fed"