Trump’s Fed pick Judy Shelton cast doubt on central bank independence

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

https://www.nationthailand.com/news/30378653?utm_source=category&utm_medium=internal_referral

Trump’s Fed pick Judy Shelton cast doubt on central bank independence

Nov 23. 2019
Judy Shelton speaks during a Bloomberg Television interview in Washington on May 29, 2019. MUST CREDIT: Bloomberg photo by Andrew Harrer.Photo by: Andrew Harrer — Bloomberg

Judy Shelton speaks during a Bloomberg Television interview in Washington on May 29, 2019. MUST CREDIT: Bloomberg photo by Andrew Harrer.Photo by: Andrew Harrer — Bloomberg
By Syndication Washington Post, Bloomberg · Saleha Mohsin

417 Viewed

Judy Shelton, one of President Donald Trump’s most recent picks for the Federal Reserve board, challenged an article of faith regarding the U.S. central bank in private comments to a bank executive last month: that it should operate free of political influence.

Shelton shared her views on monetary policy and the Fed with Beat Siegenthaler, global macro adviser for UBS Group, after speaking at an event on Oct. 18 in Washington on the sidelines of the International Monetary Fund annual meetings.

“I don’t see any reference to independence in the legislation that has defined the role of the Federal Reserve for the United States,” Shelton told Siegenthaler, according to a transcript of the interview.

Shelton confirmed she had spoken with Siegenthaler and a UBS spokesman declined to comment. The transcript was shared with the bank’s institutional clients, according to a person familiar with the matter.

If people were to read the law, “they would see that it demands that the Board of Governors of the Federal Reserve work hand-in-hand with Congress and the president to meet certain strategic economic goals for the U.S.,” Shelton added.

It is unusual for someone the president intends to nominate for the Fed board to speak publicly before the Senate considers her for the post, and even rarer for a Fed nominee to question the central bank’s independence. The remarks may complicate Shelton’s nomination, should Trump proceed to send it to the Senate. The White House has yet to officially nominate Shelton or another person Trump has said he intends to put on the Fed board, the St. Louis Fed’s director of research, Christopher Waller.

Some Republicans on the Senate Banking Committee, which would consider Shelton’s nomination, have expressed concerns about her to the White House, citing her unconventional views on monetary policy, according to people familiar with the matter. Shelton and Waller’s paperwork was expected to be sent to the Senate in September, but now may be delayed until next year as the White House waits for the candidates to complete ethics requirements, the people said.

They asked not to be identified discussing a personnel matter. The White House didn’t immediately comment.

Shelton agreed to an interview with Siegenthaler because she had seen him conduct similar question-and-answer sessions with other notable economists, she said in an email. She was not compensated for her time with the UBS economist, she said.

Before Trump, presidents were measured in their public criticism of the Fed in order to avoid appearing as if they sought to influence the central bank’s conduct of monetary policy. Fed independence is considered a given among investors who buy U.S. debt, financing the government’s budget deficit, who assume the central bank will ignore political pressure to keep interest rates artificially low.

But Trump has turned that tradition on its head. He regularly criticizes the Fed and the Fed chairman he appointed, Jerome Powell, calling him an “enemy” of the U.S. and a “bonehead” in tweets for not cutting interest rates farther and faster, asserting that the central bank is braking what would otherwise be a runaway economic boom.

Previous presidents have criticized Fed chairs in private.

The president met with Powell on Nov. 18 at the White House to discuss some of his frequent complaints. Lately, he has said that the Fed should set interest rates below zero to keep up with countries that have been able to sell debt at negative rates.

In that light, Shelton’s comments are in line with the philosophy of the man who would nominate her. She told Siegenthaler that the Fed “is by its nature a creation of Congress,” adding that if it insists on independence it should be more transparent about its activities with lawmakers.

“It’s in some ways healthier that criticism from the White House is out in the open. At least we know how the president feels,” Shelton said in the UBS interview.

The Federal Reserve isn’t promised independence under the Constitution, but like many American institutions it has internal checks and balances. The monetary policy committee, at full strength, has seven politically-appointed board members, but also five of the 12 regional bank presidents who are appointed by independent boards. The committee could also elect its own chairman if it wasn’t happy with the president’s choice.

Board members serve staggered terms which can protect political diversity. And economic researchers have long concluded that the central bank’s independence is associated with better economic outcomes.

Shelton told Siegenthaler that the 1978 Humphrey-Hawkins Act was meant to bring together the Fed, Congress and the president to “pursue a sound and stable and orderly international monetary system.”

Shelton’s nomination would be a test of whether Congress is willing to allow an economist with unorthodox views to fill one of seven seats on the Fed’s board. She has previously questioned the Fed’s so-called “dual mandate” to contain inflation and maximize employment, and she has also publicly mused about returning the U.S. to the gold standard, a move that many mainstream economists believe would damage the economy and handcuff the Fed in the event of a recession or other crisis.

The concerns of Senate Banking Committee members, shared with White House economic adviser Larry Kudlow and legislative affairs director Eric Ueland, include that Shelton once promoted returning to the gold standard, the people said.

Since Trump said he would nominate her, Shelton has participated in numerous interviews with news organizations, sometimes publicly advocating for the Fed to cut interest rates and questioning the central bank’s statutory mission, which is set by Congress.

White House officials have asked her to stop agreeing to interviews, according to people familiar with the matter, out of fear that she may say something inflammatory that could scupper her confirmation in the Senate.

Shelton said she plans to continue contributing to global discussions on monetary policy and that she encourages policy makers to be accessible and transparent.

Shelton’s comments to UBS’ Siegenthaler also revealed her view that the Fed is being bullied by markets. She told him that the Fed “wouldn’t dare pull the monetary rug out from under market expectations, even if it wanted to discipline” them.

“Someone could say that it’s the central banks that are the currency manipulators,” she added.

“All it takes is an announcement by, say, the head of the ECB that we’re looking at more stimulus measures” to weaken the euro against the dollar, she said, referring to the European Central Bank. “That does affect our trade outlook.”

While Trump has filled four of the Federal Reserve’s seven board seats and won Powell’s confirmation as chairman, he has struggled to find candidates acceptable to the Senate for two remaining vacancies. Four people Trump previously said he would nominate failed to advance even as far as a confirmation hearing, raising questions about the White House’s vetting procedures.

1 thought on “Trump’s Fed pick Judy Shelton cast doubt on central bank independence

  1. 该如何醍醐灌顶才能唤醒“装睡的省委超良书记”?
    习近平总书记在甘肃考察时强调:“党的一切工作都是为老百姓利益着想,让老百姓幸福就是党的事业。”如果中央第三巡视组查到的老河口组织部不受理、不出具《“级别认定”信访事项处理意见书》这些问题,省委组织部、襄阳市委组织部几年来都只满足于“纸上整改”,不监督也不落实,所有问题全凭中央巡视组、省委巡视组一个一个“回头看”、每年一次“再检查”故意使监督程序“空转”,那政治巡视制度将难以负荷繁重的重复性工作,对襄阳政治生态改善的推进也将步履维艰。再次质问省委第十一巡视组世友组长:您走马观花式的巡视过后,监督长期“缺位”、程序经常“空转”,您觉得对得起纳税人的钱吗?!
    老河口组织部对巡视发现问题假整改、袁乃义部长为个人私利耍横而故意漠视侵害群众利益!对群众关心并反映强烈的“级别认定”问题漠然处之,空头承诺,推诿扯皮,对“耍官威”乱象频发原因究竟何在?省纪委不管!一错再错谎话连篇的无政治担当、对党阴奉阳违的老河口组织部乃义部长故意不作为、不担当,用权“任性”到何时?为何“级别认定”问题巡视组介入调查襄阳市委组织部胡勇部长仍不重视?暴露职能监管“短板”的闹剧何时休?规则意识还要说多久?
    中央第三巡视组领导发现老河口市委组织部袁乃义不依法依规出具《“级别认定”信访事项调查处理意见书》并订立攻守同盟,拒绝进行市级公开听证,公然对抗组织审查,省公安厅自觉扛起惩腐打“伞”政治责任收到问题线索后转襄阳市纪委,襄阳市纪委监委不敢管!感谢浙江大学党委书记任少波、校长吴朝晖收到问题线索的举报材料后及时通过浙江大学继续教育学院副院长兼纪委书记周兆农转在浙江大学参加开班学习的襄阳市纪委副书记徐瑞、市纪委常委、市监委委员钱鑫,国信局给出《信访工作责任制实施办法》追责问责典型案例剖析(二)等指导意见
    (详见http://www.gjxfj.gov.cn/gjxfj/xxgk/bgt/webinfo/2019/04/1556851709230902.htm类似老河口市委组织部袁乃义因未按照规定受理、办结信访事项,就要承担通报批评和诫勉谈话的法律责任)后,襄阳市纪委监委相关人员政治站位不高、抱着多一事不如少一事的想法,生怕问责给当地“抹黑”“添乱”仍不敢管!奢谈“准确把握诫勉谈话的尺度和温度”、“诫勉之要在于触及乃义部长灵魂”!请问媒体记者:咋办?!省委超良书记、襄阳市委乐成书记,咋办?!长期装聋作哑,不闻、不问、不管,并没有把全面从严治党真正放在重要位置、自觉做到“两个维护”,有损书记形象令人瞠目结舌!不仅违背了我们党的宗旨,更严重影响了党的形象,损害了群众对党的信任与拥护!中央纪委国家监委机关公布专项整治漠视侵害群众利益问题监督举报方式,声称是为方便群众参与监督和反映问题,如果不是假把式?!谁有本事叫醒装睡的省委超良书记和襄阳市委乐成书记?!别抱鸵鸟心态当起了“甩手掌柜”要以强烈的政治担当、坚决的斗争精神抓紧抓实,真刀真枪解决问题;要突出政治警示,增强政治自觉,聚焦信访矛盾化解,狠抓源头预防、积案化解和多元联动,依法维护群众合法权益避免选择性执法、随意性执法、钓鱼式执法、舆情防范和处置误区和死地并大胆管一管下属对群众提出的合理合法诉求要按鄂信发〔2017〕26号文件规定的格式和要素提出明确的处理意见!切实使诫勉对象袁乃义思想有震动、灵魂受触动心服口服,才能真正认错、改错。
    为干扰侦查视线而虚构鉴定事实,捏造“专门鉴定属实”的鉴定结论,显然只是湖北省高院的一家之言,司法“勾兑”东窗事发只是时间问题。湖北省高院司法败类破坏党内政治生态、滥用职权、玩忽职守帮助犯罪分子逃避处罚的“虚构鉴定事实、捏造鉴定结论”案件的存在对于最高法、最高检来说简直是一个噩梦!因为,所谓天知地知你知我知的勾兑模式,有几个经得起举报、查处、交代、再查处的深挖模式。“全面从严治党”可不是说着玩的!面对铁的事实,省政法委、省高院一些人的脸会火辣辣吗?是否有愧怍之意?又能否诚恳认错?对类似襄阳揭不开“据以定罪量刑的涉案的0087048号原始发票及其鉴定结论”等事实真相“盖子”的反常现象,上级纪委监委要亲自过问,依法采取挂牌督办、提级办理、异地用警、异地羁押等措施、公安、纪检监察“双专班”侦查模式,落实提前介入、同步立案、联合办案、信息反馈等措施,提高办案质效。毕竟,立案侦查是刑事诉讼的起点,也是走向公正的起点。案件之后走向,取决于证据收集情况和司法机关认定。案件何时在正确的路上,中外媒体记者,以及全社会都再耐心等待。然而,省国保总队和襄阳国保支队相关人员缺乏政治敏锐性,在思想上缺了钙、丢了魂未及时将此重要信息向上级部门或领导报告,故意对上敷衍、对下冷漠、对事拖沓,核查“据以定罪量刑的涉案的0087048号原始发票及其鉴定结论”等事实真相后及时“召开听证会公开核查结果”没人提了、呼唤公正尽快到来及时彻查司法败类帮助故意隐匿或毁灭“据以定罪量刑的涉案的0087048号原始发票”证据的犯罪分子逃避法律处罚案!竟然没有人继续关心该谁立案了——谁自家吃苍蝇见鬼谁知道!此致 中央纪委、中央组织部、各省、市、自治区纪委、国家信访局、中共湖北省委组织部 湖北省老河口职业技术学校首任武装部长:徐学军 627476752@qq.com 手机:13986348626 邮编:441805 二零一九年九月五日
    附件一:2001年老河口市武装部的【2001】河武字第20号《任职命令》; 附件二:2003年中共襄阳(时称襄樊)市委、政府和军分区的襄发【2003】12号文件;附件三:2017年5月18日信访人徐学军《致中共湖北省委第八巡视组组长王传豪的一封公开信》附件四:2017年5月24日信访人徐学军《关于对“据以定罪量刑的涉案的0087048号原始发票”证据重新鉴定字迹的申请》; 附件五:2017年5月24日信访人徐学军《请求湖北省政府公开“据以定罪量刑的涉案的0087048号原始发票”及其鉴定结论等事实真相的申请》;附件六:2019年2月16日信访人徐学军《第36次请国家信访局督查和中纪委专项巡视的请示》 敬请链接曾任武装部长徐学军的博客https://wordpress.com/home/gravatarcomxuxuejun333.home.blog

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s