Fed News Friday: Janet Yellen
October 1st, 2010To Wall Street she is considered “the inflation dove”, but after Wednesday’s hearing she will now be named the Vice Chair of the Federal Reserve. She began her work with the Fed back in 1994 when she entered as a Board member. Later she headed up her own branch in San Francisco…but now she is on to bigger things. Let’s take a moment to learn how this new appointment will affect the economic policies of the future.
Her Wall Street nick name was given to her after her staunch stances were expressed on saving and increasing jobs to boost employment. Chances are if you are reading this you have some sort of knowledge on how the government cannot actually create jobs without getting rid of others. If this concept is new to you I suggest you take a look at a recent post from our friend Tom Mullen on how the government should keep themselves out of the job market. The government can only hurt the future employment numbers.
Moving back to Yellen’s track record and how she will be changing the future of our economy…to be honest nothing much will change at all aside from a little more QE’ing. Yellen has been with the Fed since 1994. Much like career politicians who keep their seat and will do anything they can to manipulate their populous into continuously voting for them, these Fed members are also loyal to these positions and are constantly immersed in the Keynesian economic theory. Before we talked about how the economics profession is overflowing with Keynesians, this nomination further proves that.
Yellen is on the same team as the past 9 decades of Fed officials, no change in philosophy except a more powerful push for government intervention to produce jobs and a sound economy. Sounds sweet and I bet she may even think this printing press is the way to solve our problems.
Unfortunately, there will be no change in policy, which means the direction we are headed will not change. Sorry to be such a downer on everyone’s favorite day of the week. This is just a reminder that things aren’t going to change unless we keep educating friends and others on the central banking system so in the future we can knock this establishment on its knees. Take a hint from our Rebels.
*In addition to Janet Yellen, Sarah Bloom Raskin (Fed Board) and Peter Diamond (Fed Board) were also nominated, Raskin being confirmed… Diamond’s confirmation is still in limbo. All support the expansion of Fed activity.
