And yes, there's a bit of payback for Donald Trump, who denied her a well-earned second term as Fed chair, reportedly in part because he thought she was too short .
Before I get there, a word about Yellen's time at the Federal Reserve, especially her time on the Fed's board in the early 2010s, before she became chair.
Specifically, there were many people on the right condemning the Fed's efforts to rescue the economy from the effects of the 2008 financial crisis. Among them, by the way, was Judy Shelton, the totally unqualified hack Trump is still trying to install on the Fed board, who warned in 2009 that the Fed's actions would produce "ruinous inflation." (Hint: They didn't.)
Quite a lot has been going on:
Economists fear a "double dip" recession is coming soon - CBS News
JPMorgan Chase's top economist, Michael Feroli, told clients last week the recent coronavirus surge and renewed restrictions to stop the spread would drive up layoffs and shrink economic activity in the first three months of 2021 by some $50 billion. That translates into an annualized drop in gross domestic product — the total value of products and services in the U.S. — of about 1%.
"If the virus weighs on activity and leads to business closures — temporary or otherwise — we think that related layoffs would show up," Feroli said in the JPMorgan Chase report. "The resurgence of COVID-19 appears to have already weighed on [consumer] sentiment . . . and we think the virus could have increasingly negative effects."
Why economists are getting worried about 2021
Americans might be gearing up for the holidays, but economists are looking ahead to January, trying to parse a bevy of new data points for clarity about what lies beyond 2020. The picture is, at best, murky — and there is growing trepidation that an uncontrolled Covid-19 surge triggered by the Thanksgiving weekend could further weaken a slowing recovery.
"What we're looking for at the moment is signs of cracks in what has been reasonably good economic growth," said Gary Schlossberg, global strategist at the Wells Fargo Investment Institute.
Buttonwood - Is there an M&A boom coming? | Finance & economics | The Economist
I MAGINE YOU are the boss of a public company. Normally you are busy making decisions, visiting outposts, talking to customers, suppliers and employees. The meetings are endless. You have little time for reflection. Then, suddenly this spring, after a bout of firefighting, the diary is bare. You sit in your study, hiding from the family, and ruminate—about what your firm lacks, about what it has too much of. You call a friendly investment banker and say: "I may need to do a deal soon."
Other things to check out:
Overdue action - Bad debts in China | Finance & economics | The Economist
Between 2015 and 2019 the stock of household debt in China rose by about $4.6trn, close to the $5.1trn accrued by Americans over a similar period before the global financial crisis of 2007-09, according to data from Rhodium Group, a consulting firm. The outstanding balance of delinquent consumer receivables could reach nearly 3.3trn yuan ($500bn) next year, up from just 1trn yuan in 2015, reckons iResearch, another consultancy.
In June the southern city of Shenzhen drafted the country's first personal bankruptcy law. Courts routinely heard disputes between lenders and borrowers, but allowed only creditors to file suits. The new law, to be rolled out next year, will offer debtors more protection against creditors. A few other cities are conducting similar experiments, though "these reforms are still very limited," says Li Jiao of Buren, a law firm.
Something for everyone - Janet Yellen will lead Joe Biden's Treasury. What does she stand for?
I N THE FIRST instalment of the "Harry Potter" series, the protagonist stumbles across the Mirror of Erised. Anyone who looks into the mirror sees the "deepest, most desperate desire" of their hearts reflected back at them. There is a touch of Erised about President-elect Joe Biden's decision to nominate Janet Yellen as America's next treasury secretary, first reported on November 23rd.
In today's political configuration, that matters. Mr Biden must tame a split in the Democratic Party between run-of-the-mill centrists and tear-it-down millennial socialists. And before she becomes treasury secretary, Ms Yellen must be confirmed by the Senate, which Republicans currently control.
Economics professor weighs in on how promise of COVID-19 vaccine could impact economy
SALT LAKE CITY -- Health leaders across the United States are optimistic a COVID-19 vaccine could be coming soon. In Utah, department of health leaders say they hope a vaccine will be available to all Utahns by July.
The news of a vaccine brings hope but won't have a major impact on Utah's economy immediately, University of Utah professor of economics Peter Philips said.
"Promises won't change very much of today's realities because there are many speedbumps between that promise and an actual implementation of a vaccine," he said.
Claims the UK has 'maxed out' its credit card are bad economics | Government borrowing | The
This "tough choices" narrative – raise taxes or cut spending to reduce the deficit and bring public debt down – is compelling for centrists not because it is correct, but because it chimes with the public's common sense, which has been shaped by decades of media coverage and political discourse venerating balanced budgets.
These two forces combined – the central bank and the City – explain why interest rates on public debt are at historical lows. Rather than making cuts, the government should be using this opportunity to borrow more in order to finance the country's recovery.
Happening on Twitter
In Praise of Janet Yellen the Economist https://t.co/JnH5d4cz3i LarryMishel (from DC) Fri Nov 27 01:25:43 +0000 2020
No public figure in my lifetime has made such a monopolizing claim on our attention as Trump. On Jan. 20 — praise b… https://t.co/DPpd828lAi FrankBruni (from New York, NY) Sun Nov 22 12:12:58 +0000 2020
No comments:
Post a Comment