Why Bank Presidents Could Rule the Fed Next Year
A Looming Clash Between Academics and Business Leaders
Just to make the situation even murkier, two of the five bank presidents who will be on the FOMC in 2018 are currently unknown.
New York Fed President William Dudley will be leaving by mid-year. The other four will be the Atlanta, Cleveland, Richmond, and San Francisco presidents; and the Richmond post is presently vacant.
My good friend and fishing buddy Bob Eisenbeis of Cumberland Advisors, a former Fed economist, pointed out in a recent analysis that once Yellen leaves, the Board of Governors will have only one doctorate-holding economist, Lael Brainard (who will quite likely be leaving the board within a year – see below). Marvin Goodfriend will be another when he is confirmed.
Goodfriend is often cited as a conservative economist. I am not sure how that squares with his open support of negative interest rates. Bob Eisenbeis also just penned a piece on Marvin Goodfriend. There is no question Marvin is qualified.
Continue reading for Bob’s analysis: https://www.equities.com/news/why-bank-presidents-could-rule-the-fed-next-year