{"id":1748078,"date":"2022-11-22T07:55:51","date_gmt":"2022-11-22T12:55:51","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1748078"},"modified":"2022-11-22T11:05:07","modified_gmt":"2022-11-22T16:05:07","slug":"miranda-devine-the-u-s-economy-is-at-the-mercy-of-jerome-powell-and-janet-yellen","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/miranda-devine-the-u-s-economy-is-at-the-mercy-of-jerome-powell-and-janet-yellen\/","title":{"rendered":"Miranda Devine: The U.S. Economy Is at the Mercy of Jerome Powell and Janet Yellen"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">30<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fmiranda-devine-the-u-s-economy-is-at-the-mercy-of-jerome-powell-and-janet-yellen%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1748078&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><aside class=\"single__inline-module alignleft\">\n<div class=\"inline-module inline-module--columnist inline-module--author\">\n<div class=\"inline-module--author__img\">\n\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"76\" height=\"69\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/03\/miranda-devine222.png?w=76&#038;h=69&#038;crop=1\" class=\"attachment-nyp_columnist size-nyp_columnist\" alt=\"Miranda Devine\" srcset=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/03\/miranda-devine222.png?w=152 152w, https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/03\/miranda-devine222.png?w=114 114w, https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/03\/miranda-devine222.png?w=76 76w, https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/03\/miranda-devine222.png?w=38 38w, https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/03\/miranda-devine222.png 706w\" \/>\t\t<\/div>\n<\/div>\n<\/aside>\n<p>While Americans struggle to pay their bills<a href=\"https:\/\/nypost.com\/2022\/11\/10\/inflation-hits-7-7-in-october-as-federal-reserve-mulls-next-move\/\"> amid soaring inflation<\/a>, the institutions we rely on to wrestle the economy back to stability are engaged in a secret power struggle which only worsens the impending crisis.\u00a0<\/p>\n<p>Federal Reserve Chair Jerome Powell and Treasury Secretary Janet Yellen are engaged in a tug of war over interest rates, sources say.\u00a0<\/p>\n<p>On Yellen\u2019s side are liberal members of the Fed, including the ambitious, climate-obsessed Federal Reserve Gov. Lael Brainard, who spearheaded the stealth takeover of the board by progressives over the past year.\u00a0<\/p>\n<p>While Powell is determined to <a href=\"https:\/\/nypost.com\/2022\/11\/02\/fed-hikes-interest-rates-by-0-75-points-again-as-inflation-rages\/\">bring down inflation by hiking interest rates,<\/a> as central bankers around the world traditionally have done, sources say Yellen has been counteracting his efforts with the assistance of progressive \u201cdoves\u201d of the Federal Reserve, who background journalists that there <a href=\"https:\/\/nypost.com\/2022\/11\/14\/lael-brainard-pace-of-interest-rate-hikes-can-slow-soon\/\">might be a slowdown in rate hikes<\/a>, leading to roller-coaster market rallies.\u00a0<\/p>\n<p>\u201cWhile Powell is raising rates, Yellen is considering buying back Treasury bonds,\u201d says Brent Johnson, CEO of Santiago Capital, who understands the Fed\u2019s internal dynamics.\u00a0<\/p>\n<p>\u201cThis could counteract Powell\u2019s efforts and potentially spur inflation on\u201d.\u00a0<\/p>\n<p>Rallying the markets defeats Powell\u2019s efforts to combat inflation. But the tug of war has ensured the stock market did not crash before the midterms, giving voters the perception that the economy is healthy, delaying company layoffs and keeping share prices up.\u00a0<\/p>\n<p>This unusual power struggle between the Fed and Treasury looks as if it will continue, delaying \u2014 and likely exacerbating \u2014 the inevitable economic hard landing, says Johnson.\u00a0<\/p>\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/janet-yellen.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"682\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/11\/janet-yellen.jpg\" alt=\"Treasury Secretary Janet Yellen and Federal Reserve \" doves \/><\/a><figcaption>Treasury Secretary Janet Yellen and Federal Reserve \u201cdoves\u201d believe a recession could be temporarily avoided.<\/figcaption><figcaption><span class=\"credit\">REUTERS\/Jonathan Ernst\/File Photo<\/span><\/figcaption><\/figure>\n<p>\u201cPowell has been very, very clear in what he says, that he wants to<a href=\"https:\/\/nypost.com\/2022\/09\/08\/jerome-powell-hopes-fed-rate-hikes-wont-cause-deep-recession\/\"> raise interest rates and slow the economy<\/a>. He says it won\u2019t be a soft landing, that it might take a recession in order to slow down inflation.\u00a0<\/p>\n<p>\u201cSo, when Powell is raising interest rates, he doesn\u2019t want the market to go to all-time highs\u00a0<\/p>\n<p>\u201cWhere it gets tricky or conflicted is because not everyone who works at the Federal Reserve likes each other [and] various members are more hawkish than others.\u201d\u00a0<\/p>\n<aside class=\"single__inline-module alignright\">\n\t<\/aside>\n<p>Hawkish in this context means adhering to Powell\u2019s traditional view that interest rates need to rise to combat runaway inflation, even if that means a crashing stock market and a short, sharp recession,\u201d he said.\u00a0<\/p>\n<p>Doves, who include Yellen, liberal members of the Federal Reserve and the Biden administration, think they can avoid a recession for a year or two \u2014 maybe until after the 2024 election.\u00a0<\/p>\n<p>The administration \u201cwould prefer a soft landing to a hard landing,\u201d says Johnson.\u00a0<\/p>\n<p>\u201cI don\u2019t think it is possible.\u00a0<\/p>\n<p>\u201cPowell says it\u2019s very unlikely we will get a soft landing.\u00a0<\/p>\n<p>\u201cBut that\u2019s what Yellen and Brainard are determined to do.\u00a0<\/p>\n<p>\u201cEssentially, I believe the Republicans would like a crisis leading into the election and Democrats would like to kick the can down the road.\u00a0<\/p>\n<p>\u201cI think that what Powell wants is to get the recession over with and bring the economy back quickly, and Brainard and Yellen are more inclined to kick it down the road.\u201d\u00a0<\/p>\n<p>Albert Marko, a political consultant for the financial industry, also with deep knowledge of the Fed\u2019s dynamics, describes internal opposition to Powell as \u201cfinancial weaponization against the GOP.\u00a0<\/p>\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/lael-brainard.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"682\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/11\/lael-brainard.jpg\" alt=\"Federal Reserve Gov. Lael Brainard and her allies have reportedly leaked to journalists that there may be a slowdown in rate hikes \u2014 leading to market rallies.\" class=\"wp-image-24729140\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/lael-brainard.jpg?quality=75&#038;strip=all&#038;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/lael-brainard.jpg?quality=75&#038;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/lael-brainard.jpg?quality=75&#038;strip=all&#038;w=512 512w\" \/><\/a><figcaption>Federal Reserve Gov. Lael Brainard and her allies have reportedly leaked to journalists that there may be a slowdown in rate hikes \u2014 leading to market rallies.<\/figcaption><figcaption><span class=\"credit\">AP Photo\/Manuel Balce Ceneta, File<\/span><\/figcaption><\/figure>\n<p>\u201cIt is really unprecedented where Yellen . . . can surge the dollar and take the markets down at will while putting blame on Republicans for stalling legislation for the next two years.\u201d\u00a0<\/p>\n<p>Brainard is talked about in Washington as a <a href=\"https:\/\/nypost.com\/2021\/11\/22\/lael-brainard-nominated-as-feds-vice-chair-may-be-in-line-for-higher-posts\/\">potential replacement for Yellen<\/a>, 76, and was reportedly angling for Powell\u2019s job before Biden reappointed him last year for another four years.\u00a0<\/p>\n<p>Marko says her allies background journalists, \u201ccountering what Powell states in previous meetings . . . setting off buying sprees in the market which [anticipates] a slowdown in rate hikes . . .\u00a0<\/p>\n<p>\u201cFrom the public\u2019s perception, their housing prices are up, their stocks are only down marginally and companies are still operating normally, but this is merely a facade by an artificially elevated market.\u201d\u00a0<\/p>\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/powell-brainard.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"682\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/11\/powell-brainard.jpg\" alt=\"Brainard is considered a potential successor for Yellen and reportedly attempted to replace Powell.\" class=\"wp-image-24729141\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/powell-brainard.jpg?quality=75&#038;strip=all&#038;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/powell-brainard.jpg?quality=75&#038;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/powell-brainard.jpg?quality=75&#038;strip=all&#038;w=512 512w\" \/><\/a><figcaption>Brainard is considered a potential successor for Yellen and reportedly attempted to replace Powell.<\/figcaption><figcaption><span class=\"credit\">REUTERS\/Kevin Lamarque\/File Photo<\/span><\/figcaption><\/figure>\n<p>The Federal Reserve approved a fourth straight rate hike of three-quarters of a percentage point earlier this month and Powell was crystal clear about his determination to keep going.\u00a0<\/p>\n<p>\u201cIt\u2019s premature to discuss pausing [interest rate hikes], and it\u2019s not something that we\u2019re thinking about,\u201d he said.\u00a0<\/p>\n<p>\u201cNo one knows if there\u2019s going to be a recession or not and, if so, how bad that recession would be.\u201d\u00a0<\/p>\n<p>It\u2019s a delicate balance, with history suggesting that Powell\u2019s harsh medicine is a necessary corrective to get the economy back on track.\u00a0<\/p>\n<p>But it makes the job harder to have politicized Polyannas behind the scenes pulling in the opposite direction.\u00a0<\/p>\n<p>\u201cEven if the Fed and Treasury were working hand in glove and everyone agreed, even then the problems are insurmountable,\u201d says Johnson.\u00a0<\/p>\n<p>\u201cBut the fiefdoms and factions and infighting just exacerbate the problems.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>While Americans struggle to pay their bills amid soaring inflation, the institutions we rely on to wrestle the economy back to stability are<\/p>\n","protected":false},"author":1,"featured_media":1363926,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[],"class_list":["post-1748078","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1748078","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1748078"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1748078\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1363926"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1748078"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1748078"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1748078"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}