Farewell to the irrelevant Fed Chair Janet Yellen & What is to be done @JohnTamny

Feb 14, 04:33 AM

AUTHOR.

(Photo: Chair Yellen presents the Monetary Policy Report to the Congress.

Date 15 July 2014, 10:35

Source _D4A3965

Author Federalreserve)

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Farewell to the irrelevant Fed Chair Janet Yellen & What is to be done @JohnTamny

https://www.forbes.com/sites/johntamny/2018/02/11/janet-yellens-successful-fed-tenure-merely-underscores-the-central-banks-irrelevance/#1a1416af6b0e

If yes to any of the above, what happened? From 1987 to 2001 Greenspan could apparently do no wrong. Mere mortals hung on his every word. CNBC's confused journalists tracked the size of Greenspan's briefcase to allegedly divine which way he would move on the Fed's short-term rate target. During this time the economy boomed. So did the stock market. Until it didn’t.

There was a big economic and market correction in 2001, followed by a much-less-vibrant economy up until Greenspan’s 2006 departure from the Fed. Again, what happened? Did Greenspan lose his touch? Did the man who allegedly saved the world (Time Magazine) forget how to centrally-plan access to credit?...

More realistically, George W. Bush happened to the once-revered Fed Chairman. Before Bush, from ’87 to ’01 Greenspan got to run the Fed at the end of Ronald Reagan’s presidency, through the one-term (mercifully) presidency of W’s father, and then through two terms of Bill Clinton.

From left and right Janet Yellen has been praised recently for her allegedly successful Fed tenure. That she has been is a reminder of how little the Fed's vain attempts to centrally plan a short-term rate target and so-called "money supply" have to do with what actually happens in the real economy. All it takes to understand why Yellen wasn't that consequential is to read her interviews, statements and speeches. She embraces every economic fallacy under the sun. If she were powerful, the economy and markets would have reflected this power negatively. But they didn't. It's a reminder that Fed Chair success is an effect of existing economic policy, or lack thereof: Greenspan achieve a "Maestro" reputation under Reagan and Clinton, but lost his name under George W. Bush. Yellen is similarly an accident of history: economic policy was largely benign during her term, hence her misunderstood success....