The Fed's New Bucking Bull
Rodney Johnson | April 05, 2019 | Last weekend I went to a local rodeo with my wife and parents. Before the teen bull riding competition started, an older gentleman next to me asked to open the screw top on his beer. He told me that 10 back surgeries had stripped him of the strength and leverage to do such things. We began talking, and I found out his son was competing. He wasn’t as old as I thought… He’d ridden bulls for eight years himself, and the life had taken its toll. I learned a lot about bull riding from him, and how the cowboys manage the bulls in the chutes before they’re turned out. The menacing beast must be positioned just so, with its head facing out, or else it could cause even greater harm to the rider. It doesn’t always work out. Several of the young men were hurt that night, with broken bones and muscle tears. They’ll all recover, but it will hurt for a long time. The unpredictable nature of the sport came to mind when I considered Trump's nominee for the Fed Reserve Board of Governors. No, not Herman Cain, whom the president nominated on Thursday... I'm talking about Stephen Moore. Moore’s a long-time economic advisor in Washington, steeped in free markets, low taxes, and low interest rates. He’s probably most famous for creating the conservative Club for Growth in the early 2000s. I think of him as an extreme version of a conservative economist, calling for big policy moves that have the potential to disrupt monetary policy and cause a bit of chaos in the markets. We had Mr. Moore speak at our conference in 2008, along with previous Dallas Federal Reserve Bank President Bob McTeer. The difference in temperament between the two was stark. Moore was impassioned and came across as impetuous. McTeer was the older, steady hand. Now Moore will likely end up with a vote at the central bank. He’s the bull entering the Fed’s china shop, and something’s going to wind up broken. You and I will be the ones to pay for the damage. READ MORE » |  Your Free Pot Stock Guide Is Available For Immediate Download
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