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Is the Fed giving up its independence?
Is Jerome Powell repaying Donald Trump for not reappointing Janet Yellen?
The world was surprised when Donald Trump once again broke tradition by not reappointing Janet Yellen as the Chairperson of the Federal Reserve Board. Traditionally, the Fed Chair serves for two terms, and partisan politics are put aside for those appointments. Obama reappointed the Republican Ben Bernanke, just as Clinton renominated Alan Greenspan.
This nonpartisan approach to the Federal Reserve has been of huge benefit to the United States. Alan Greenspan is largely responsible for the long period of growth and stability in the 1990s, as well as the soft landings after 9–11 and the implosion of the Long Term Capital Management fund. Ben Bernanke is probably singularly responsible for helping the United States avoid a full-fledged depression in the wake of the 2008 financial crisis.
Janet Yellen was widely respected. She had been Ben Bernanke’s Deputy during the height of the financial crisis, and she continued his aggressive policies to help the economy recover after his retirement. Even Trump admitted he liked her and liked her policies. Unbelievably, a new report says he decided not to renominate her due to the fact that she’s short.
