The Most Dangerous Man? Rosengren and Kaplan To Resign Over Trading

Elizabeth Warren called Chairman Jay Powell the most dangerous man in America. We suspect that history will judge Powell more in the fashion of Daniel Ellsberg (who also received that title) than Al Capone. We suspect Warren’s attempts to torpedo the renomination will be unsuccessful and that isn’t changed by her recent theatrics. Though betting markets do reflect an increased chance for Brainerd in the wake of the comments. She also just gave a speech at NBER that is worth a read.

It has been the fastest news week for the powerful US Federal Reserve in a while. In congressional testimony, Powell admitted in recent comments that the Fed is indeed persistently high inflation and growth simultaneously challenged in some areas because of the healthcare situation. Nonetheless, despite the frustrating inflation situation, he still sees it as something that is temporary, if not as much as initially expected, that will resolve with time. He stressed that he’s prepared to act if proven wrong.

So, for those who want to bring out the leisure suits and the Studio 54 soundtrack please just relax a little bit. Do you want to be rich or do you want to be right? If there was runaway inflation and Milton Friedman’s ghost was about to save us all then we truly doubt that the US dol...
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