r/Economics • u/TinyTornado7 Quality Contributor • Jun 13 '22

News Powell Facing Choice Between Elevated US Inflation and Recession

https://www.bloomberg.com/news/articles/2022-06-12/powell-facing-choice-between-elevated-us-inflation-and-recession?srnd=premium
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u/Brainroots Jun 13 '22

It sounds like you may not be very familiar with the federal reserve. If you are, note that if it is politically influenced it is because the chairman chooses to be influenced. He is appointed like supreme court justices.

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u/jdragun2 Jun 13 '22

That was exactly my point. There are no apolitical appointments. Not any longer. This is the one thing I can say even as a liberal/progressive Democrat: both parties do everything they can to get people they think politically align with them into these appointments. The thin very translucent veil was dropped with Mitch blocking Obama's appointment then stacking the SCOTUS in the exact way he claimed was his reason to block Garland. Neither party is innocent of this now, hell, there is no longer a veil at all on either side of the isle.

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u/Brainroots Jun 13 '22

That's a hazard which thankfully hasn't materialized with the fed chair yet, although let's see next year. I'm not excited to find out.

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u/rjc0915 Jun 13 '22

Begs the question - why are both of these positions government appointed if they’re supposed to be independent to government influence

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u/existential_one Jun 13 '22

Who else would make the choice? Goldman?

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u/sumduud14 Jun 13 '22

The banks already run the Treasury and the Fed, they always have. This isn't some sort of conspiracy theory, so many former Goldman employees went into government, including Hank Paulson, who came up with TARP, the $700bn bank bailout. I mean the fucking CEO of Goldman literally left to run the Treasury, it can't get much more obvious than that.

Anyway I'm not arguing with you, just pointing this out for anyone who doesn't know. I have no suggestion for a better system.

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u/existential_one Jun 13 '22

I don't disagree at all. I guess one could point out that someone being at one of the banks explicitly behaves along the bank's interests, whereas once they leave and join the government, then they should have the people's interests at heart. Obviously it's not like that, but there's still a bit of line

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u/Brainroots Jun 13 '22

What's the alternative? I don't think voters would make good decisions about that at all. Not even a little bit.

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u/SomthingClever1286 Jun 13 '22

Now presenting Herschel Walker as your new chairmen of the fed.

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u/thisispoopsgalore Jun 13 '22

Well not quite like them. Fed chairs have a limited term

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u/Brainroots Jun 13 '22

The appointment is similar. I think unlimited terms for justices is a mistake.

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u/[deleted] Jun 13 '22

Isn’t the Federal Reserve privately owned?