Another Biden Disaster In The Making: Lael Brainard For Fed Chairman
If you want confirmation of just how crazy and far Left the puppet masters behind Joe Biden really are look at who they appoint to the key positions in our government.
We told you about the radicals appointed to key posts in the Justice Department (some with Republican votes we might add) and have warned about the Soviet-born Communist, Saule Omarova, that Biden’s handlers want to appoint as Comptroller of the Currency, but there may be a more disastrous appointment on the horizon.
Our friend Stephen Moore, through his Committee to Unleash Prosperity’s must-read Hotline newsletter, just disclosed that Biden is considering replacing Federal Reserve Board Chairman Jerome Powell with Fed Governor Lael Brainard.
Ms. Brainard, a Harvard-trained economist, was appointed to the Fed board in 2014 by Barack Obama. As The Economist explained, she has been in and out of government jobs since the 1990s, including as the Treasury department’s undersecretary for international affairs—in effect, America’s most senior economic diplomat—under Barack Obama.
And she has become a favorite of the Democratic Party’s Far Left.
Like Steve Moore, we are no fans of Fed chief Jerome Powell whose ultra-easy monetary policy this year has seen inflation spike to its highest levels since 1980. Inflation is now at 6.4% and producer prices are rising more than 8% year over year.
Steve says, and most conservatives would likely agree, that if we have to have the Federal Reserve system it should have only one core mission – price stability – and as the inflation numbers demonstrate it can’t get that right.
So, what’s the case for reappointing Powell Chairman?
One thing is that Powell has been good on cutting regulations, and that makes him probably the best we can get from Joe Biden, especially compared to Lael Brainard, whom Biden interviewed for the job last week.
And cutting regulations is definitely not Ms. Brainard’s thing, as The Economist reported:
Last October, for example, she criticized an easing of liquidity requirements for banks, warning that cash buffers are needed to prevent banking mishaps from posing a “serious contagion risk” to the wider economy. She has also dissented from rule changes allowing banks to engage in more proprietary trading and to hold less capital. A report in July by Better Markets, a group that calls for more supervision of Wall Street, praised Ms. Brainard, noting how rare it was for a Fed governor to vote against the majority on regulatory decisions.
As Stephen Moore explained:
Our sources tell us that Democrats want her running America’s monetary policy for two reasons: 1) she wants the Fed to combat climate change through regulation of the banks and 2) she wants the Fed to use its regulatory muscle to address gender equity issues in corporate board rooms. This makes her the choice of the woke crowd and the Elizabeth Warrens of the Democrat party.
Elizabeth Warren, as The Economist reported, has commended Ms. Brainard for her “strong and powerful dissents”, while calling Mr. Powell a “dangerous man” because of his penchant for cutting regulations. Given the clout that progressives have had in shaping Biden’s personnel decisions, their backing for Lael Brainard would seem to boost her chances at the Fed. Before the “dangerous man” comment in September, the probability of Jerome Powell’s reappointment stood at about 90%, with Ms. Brainard’s candidacy around 10%, according to PredictIt, a betting website quoted by The Economist. Now, Mr. Powell is down to 70% and Ms. Brainard is up to about 20%.
We think her prospects are better than that. As The Economist pointed out, Ms. Brainard is a consummate Washington insider. Her husband, Kurt Campbell, is Mr. Biden’s top adviser on Asia. She is not quite the progressive darling some have made her out to be, and given the incestuous nature of Biden’s hiring practices that gives her prospects to Chair the Federal Reserve a big boost.
Should Biden appoint Lael Brainard as Chairman of the Federal Reserve Board of Governors the Fed will have four missions: price stability, full employment, fighting climate change, and gender equity.
Fighting climate change and distracting companies from building shareholder value with “gender equity” nonsense are both inimical to price stability and full employment. As Steve Moor said, and we agree, if a radical like Brainard is nominated, she should be vigorously opposed. Since monetary stability is a key pillar of economic prosperity, in the name of “saving the planet” she is likely to put the dollar and America’s economic might in great peril.
We urge every CHQ reader and friend to use the Capitol’s toll-free switchboard (1-866-220-0044) to call your Senators and let them know that based on her record and statements as a member of the Federal Reserve’s Board of Governors Lael Brainard is unfit for the post of Chairman. Tell them you demand they vote NO should her nomination come before their Committee or to the Floor of the Senate for a vote.
Joe Biden administration