If Barack Obama’s objective in nominating Yellen is to signal continuity at the Fed, he’s achieved it. We will have continuity in a belief that asset bubble-driven consumption creates jobs, despite considerable evidence to the contrary. We will have continuity in a Fed that generates massive imbalances in our financial system and then injects endless liquidity into that system to cover up its mistakes. We will also have continuity in a Fed that does not hesitate to rescue Wall Street. But the Federal Reserve is an institution desperately in need of change. Yellen isn’t it.
This article appeared on City A.M
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