It is very easy to identify in the members of the Federal Reserve board what we do not want.
Let's talk about what we want.
Last week, President Trump told us that he announcedthough-never-formally-
Stephen Moore, the Fed's nominee, has withdrawn from consideration.
Just 10 days ago, another Fed official, Herman Cain, withdrew from the Fed.
Neither of them is suitable for the most influential economic decision-making jobs in the world.
This is evident from their confusion and self.
Refuting economic comments, not to mention the personal baggage and disturbing attitude towards women.
While some think that Moore and Kane are just the latest in Trump's model of choosing the worst for any particular job, they are off-trend from a critical point of view.
Trump's early nomination was actually a reasonable, competent professional.
Four of the five Fed governors were selected by Trump (one, Jerome H.
Powell, initially appointed as a member of the board by President Barack Obama, followed by Trump as chairman).
All four passed the Senate confirmation.
This means that the Trump administration has demonstrated its ability to identify and nominate qualified Fed candidates.
So, what are the qualified Fed candidates in 2019? First —
I can't believe it's controversial.
Professional knowledge and experience. Career-
Wise Fed candidates usually fall into one of two barrels.
They're either serious economic researchers.
Not necessarily a PhD, though no harm)
They spent their careers studying issues related to monetary policy or financial regulation and published them in their peers
Or, they have a lot of experience as financial market participants.
Sorry, my green room resident: It's not enough experience to play an economist on TV.
Second, candidates should be consistent in reasoning, intellectually honest and transparent about their policy priorities.
If they change their mind on something important (
(Such as the risk of inflation), that’s fine.
When new evidence is established, smart people always change their minds.
But they need to be honest about any inconsistency and be able to explain them.
An enlightening example is Narayana Kocherlakota, who is not on the Fed's board of directors at D. C.
But vote on interests.
Interest rate policy, while the president of the Commonwealth of miniporis.
In 2012, he experienced a very public intellectual shift from inflation hawks to inflation pigeons.
While some Fed watchers may disagree with his proposal (
Some previous conversions, some later)
He is open to his own ideas.
His reasoning has nothing to do with political convenience.
Third, the Fed candidates must show that they give priority to the political independence of the central bank.
That means they will fight.
They will do something unpopular when it is in the best economic interest.
They should respond well.
Criticism of faith
After all, the Fed did something wrong.
But not for party pressure.
Alas, Trump's criteria for future Fed appointments may vary.
It is speculated that the reason for such a sudden change in the quality of Trump's Fed choice is that he realizes that the Fed is not his puppet.
As another candidate for a job interview with Powell said, the Fed's independence has never been a "distinct feature of the president ".
But Trump has never been under pressure.
Test this hypothesis.
Trump then became increasingly angry with the Fed's rate hike, with all of his own appointees voting for a rate hike.
So he broke more than one.
The ten-year policy against the White House comments on the Fed's decision, which is the norm established to maintain the actual and recognized independence of the central bank.
When it all didn't work, he began to deliberately look for Fed candidates who showed him personal loyalty and were more obedient in their views.
So what will the president do?
Well, he can name an economist, and he tends to be moderate because of the consistent economic principles.
But Trump obviously prefers to appoint Republicans, too.
There is little overlap between reliable inflation data and reliable Republican charts.
In recent days, a White House official with the same name has been Paul Winfree, director of the conservative Heritage Foundation, who served as Trump's budget and domestic policy assistant.
Winfree's work emphasizes fiscal policy, not monetary policy, so it's not clear how he handles the central responsibility of the Fed.
If Trump finally nominated him, Winfree would have to give senators and the public a clearer idea of what he was thinking.
In any case, the people chosen by Trump must meet at least the above three criteria.
Sound judgment, strong character and open intellectual record
Thought will be very good.