Trump is showing the world how not to run a central bank

When the Canadian Bank wanted to fill a vacant spot on its policy control advice in 2018, he hired a global executive recruiter and posted a long list of qualifications.

The bank has stated that the candidate must have "extensive and extensive knowledge of macroeconomics, monetary theory, financial markets and the payments system, as well as experience in the design and use of large macroeconomic models, as well as on the market." track record as manager, good communication and analyst. Oh, and they should be able to speak both official languages.

Contrast with President U. Donald Trump, who took the trout in the Civil Service Reserve Area.

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“It's a friend of mine. It is someone who gets it, ”Mr Trump said to reporters.

After a five-month search, Canadian Bank employed a state-economist British Columbia son of Beaconry last December.

Mr. Cain's attempt to enter the Constitution is almost as smooth as the opposition growing to Mr Trump's underestimated choice, even among Republicans.

The US Senate, who must declare the chief nutrition officers, can do the right thing. It is a matter of concern that Mr Cain, who has no background in economics or finance, was ever running.

Mr Trump argues that Mr Cain is “trying” to say that the President is truly asking: a loyal partner who is committed to the US economy to keep money easy enough to re-elect next year.

The danger is that Mr Cain's controversial candidature is a diversion, which is aimed at highlighting Mr Trump's alternative to filling one of two vacancies on the Stephen Fed-libertarian economist Stephen Moore – or to make subsequent nominees more appropriate. .

Like Mr Cain, there is nothing in Mr Moore's background that he is ready for Fed. Do not seek in-depth information on macroeconomic models and monetary theory on its résumé. Mr. Moore's career focused on television prayer, a Republican principles on low taxes and a small government, and later, Mr Trump. His views on the diet are conveniently transferred depending on who is in the White House. When Barack Obama was president, he repeatedly warned about the dangers of keeping rates low for a long time. With the economy running warmer following Mr Trump's election, he moved to a request for reductions in rates. As Harvard University economist Greg Mankiw, a former economic adviser to US President George W. Bush, sent him a recent blog post: the “intellectual gravitas” by Mr. Moore for the post.

Mr Cain's refusal should be any progress. There are some credible allegations of sexual harassment before him, which helped to run a race for the 2012 Republican presidential nomination. His economic ideas are on the margins, including bringing back advocacy to the gold standard and tax reform that is dangerously retrospective at a time of growing inequality. And he has made controversies about the government facing economic statistics – the same ones that the Fed uses to direct monetary policy. He also established a political fund which raised money for Mr Trump in favor of candidates in last year's mid-term elections, and was a trusted leader of the President on his online radio show.

Mr loves it. Trump, of course, with that. What he wants is someone – anyone – who will get the FED and his chairman, Jerome Powell, to do what he wants.

There is no law that members of the Federal Open Market Committee must park their political views at the door. But they are, according to conventions, doing the rare nutrition in Hyper-partisan Washington. This enabled the central bank to do its business on moving interest rates, moving inflation and regulating financial institutions, largely free from political interference.

Loyalists on the inside would threaten the independence of the Fed, opening the door to the presidents in the future do the same.

Luckily for Mr. Powell and Fed, the structure of the bank Mr Trump would sustain too much misunderstanding. They would have only two votes among 12 on the FOMC, consisting of seven FED governors and five rotating regional reserve bank leaders.

Recognizing the sincerity of the things involved, former chairman Fed Janet Yellen warned last week that senators have a responsibility to put “qualified people” on the FED dedicated to central bank independence.

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There is no doubt that more candidates are like deputy governor of Canadian Bank, Paul Beaudry, less than Ms. Cain or Mr. Moore.


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