Because members of the Federal Reserve Board are all appointed by politicians, they should not be independent of the administration, economist and President Donald Trump adviser Arthur Laffer argues."The Fed should not be independent of the administration – never should be," Laffer told Sunday's "The Cats Roundtable" on 970 AM-N.Y. "None of those people were elected. They were all appointed."And there's no reason for them being appointed. It's a policy tool that should be in the hands of the Congress and the president to make our country better – not in the hands of some Princeton professors who never worked a day in their lives except on an academic papers far from reality. I don't think there should be an independent Fed."
His tax income is not maximized as he wants. He has two curves which he wants risk equalized, taxes and spending. He expects Treasury to find the optimum then inform the Fed and then the Fed sets rates. That means the currency function is in Treasury, one step removed from the S/L market, Treasury will always be slightly behind and we cycle, one way of the other.
I am not sure what Art Laffer is thinking, except he wants an MMT correction. He want a full Nixon Shock, the sudden repricing of government debt done overnight with Treasury and the bog banks. OK, why not say that? Why be such a coward?
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