The Institutional Risk Analyst

One aspect of the Powell press conference that has received too little attention was Powell's comments about Warsh possibly replacing Reserve Bank presidents. “That would be the beginning of the end of the Fed’s ability to make monetary policy independently,” he said, but the media did not notice. As we discussed in our interview with Alex Pollock, the 1935 amendments to the Federal Reserve Act made the chairman the CEO of the agency with unilateral power to remove Reserve Ba

“A higher money price of gold is best read as a symptom of a weaker currency. It isn't really the gold going up, it's the dollar or fiat currency in general going down.” That seems to me to be right. And then he says, “The value of gold lies in being independent from political discretion. Fiat money is a claim on the future discretion of politicians.” Isn't that good?