July 28, 2019 — The Fed has some reasons for cutting interest rates at its meeting July 31, or subsequently if the US economy weakens. (And there are some good arguments on the other side as well, if growth remains as strong as it has been over the last year.) But I find less persuasive one argument for easing: a perceived imperative to get inflation up to 2.0% or higher.
April 30, 2019 — A century ago, the gold standard was considered a guarantor of monetary stability. That golden era is long-gone. (If it ever really existed at all. The general price level fell 53% in US and 45% in the UK during 1873-1896 due to a dearth of gold deposit discoveries.)
Continuing my thoughts on the Fed candidacy of Stephen Moore: he has said several times that he favors a return to gold. In true Trumpian fashion, he recently denied having said it despite the clear video evidence.
April 30, 2019 — Of the two men whom Donald Trump had intended to nominate to empty seats on the Federal Reserve Board, Herman Cain has now withdrawn his name. This leaves the other one, Stephen Moore.
The Senate would have to decide whether to confirm Moore. He has some problems roughly analogous to Cain’s: he is considered to be under an ethical cloud and he often gets his economic facts wrong. Cynics might respond that he would thereby fit right in with the roster of Trump nominees throughout the government. But Trump’s earlier appointments to the Fed have been people of ability and integrity and have been doing a good job, Chair Jerome Powell in particular. Perhaps Trump did not start paying attention to Fed appointments until recently.