All Hail the New Fed Triumvirate: Powell, Williams, Clarida

On March 1, the Wall Street Journal reported the White House Preparing to Nominate Richard Clarida as Fed’s No. 2 Official.

Today we learn, San Francisco Fed’s John Williams Is Front Runner to Serve as New York Fed President.

San Francisco Fed President John Williams is the leading candidate to become the next president of the Federal Reserve Bank of New York, one of the most influential positions within the U.S. central bank, according to people familiar with the matter.

Mr. Williams has been recommended by the New York Fed’s board for the position. If approved by the Washington-based Fed board of governors, Mr. Williams would succeed William Dudley, who plans to step down this summer.

The president of the New York Fed, one of 12 regional reserve banks, has a permanent vote on the central bank’s rate-setting Federal Open Market Committee and serves as its vice chair. The bank is a chief regulator of the some of the nation’s largest banks and serves as the Fed’s window onto Wall Street.

Mr. Williams succeeded Janet Yellen as the San Francisco Fed leader in 2011, after Ms. Yellen was tapped by President Barack Obama to serve as the Fed’s vice chairwoman. Mr. Williams previously served as the San Francisco Fed’s research director, reporting to Ms. Yellen.

Mr. Williams, 55 years old, joined the San Francisco Fed in 2002 and previously served as a senior economist for the Fed board in Washington. He joined the central bank in 1994 and has a Ph.D. in economics from Stanford University.

Diversity

Bloomberg offers this tidbit on diversity:

"While his resume includes many of the qualifications for the job, Williams’ possible shift to New York might draw criticism about the lack of gender and racial diversity in the upper ranks of the Fed."

Qualifications

The primary qualification is to believe in magic. I have a fitting musical tribute.

Musical Tribute

Group-Think Wizards

Racial, ethnic, and gender "diversity" is meaningless when everyone thinks alike. What good could it possibly do to put a woman in the position who will look, think, and act like the rest of the clowns who believe inflation should be the goal.

We would be better served by someone who thinks radically different: Rand Paul, James Grant, Peter Schiff, and ZeroHedge all come to mind.

Instead we get John Williams, who said in February "No Signs Bubble About to Burst".

Williams' statements are in contrast to those made by Alan Greenspan. For discussion, please see the Man Who Said "Bubbles Only Identified When They Burst" Suddenly Detects Bubbles.

The only way to get into the triumvirate is to believe in inflation while having a perpetual inability to spot or even understand the cause of bubbles.

Rear View Mirror Thinking

The Fed desperately seeks inflation, but Inflation is in the Rear View Mirror if one understands what it truly is and how it works in the real economy.

Destructive asset-deflation is right around the corner courtesy of the Fed.

Hail to the Chiefs

All hail the new clueless triumvirate.