The New Fed Chair
Apparently there has been infighting between conservative factions as to who will replace Greenspan. As those of you who read my comments, or who read the Paul O'Neill book know, Alan Greenspan and O'Niell were both concerned about the deficeit and Bush's tax cuts. Well, Bush only hires trustworthy people (Bush can Trust).
See commentary before Harvard Professor Martin Feldstein got the nod. This potentially is like appointing a judge. His views, which apparently coincide with Bush and Cheney, make him a likely candidate.
Reuters 12-6-04
By Tim Ahmann
WASHINGTON (Reuters) - Conservative supply-side economists, many boasting White House ties, have thrown their support behind former Bush adviser Glenn Hubbard to succeed Alan Greenspan at the Federal Reserve.
But analysts are divided on whether their blessing gives Hubbard an edge in what is often described as a two-man race to take over from Greenspan, who must step down by early 2006.
"There are lots of other people around who are very, very good ... but I think Glenn would be a great choice," said Art Laffer, a founder of the supply-side movement, which sees low taxes on capital as a key to the economy's best performance.
At a post-election conference Laffer sponsored, a consensus emerged among a couple of hundred supply-siders that 46-year-old Hubbard was the best man for the job.
"I think Hubbard is terrific," said Jude Wanniski, another pioneer of the low-tax ideology. "I was telling (Bush political adviser) Karl Rove over and over again ... the only true supply-sider you have is Hubbard."
Along with Harvard University professor Martin Feldstein, Hubbard -- a key architect of President Bush's tax cuts -- has long been seen as a top candidate for Fed chief.
Hubbard, now dean of the Graduate School of Business at Columbia University, plays down such talk.
"I'm really happy where I am now. That's an honest answer," he told Reuters recently. "I've got a wife and two young kids in New York. I have been happy."
JOCKEYEING FOR POSITION
Greenspan, 78, has led the Fed since 1987 and must depart when his term on the central bank's board expires in January 2006. Some think he could leave even sooner.
That leaves President Bush with a choice that could leave an indelible economic mark.
While many observers hesitated to handicap a race when the runners on the White House list are still unknown, Feldstein, 65, is seen by some as having an edge, partly because Hubbard's expertise lies in finance, not monetary economics.
And some analysts are skeptical public support from prominent supply-side economists will raise Hubbard's star.
"I don't know whether that's a constituency that will figure greatly in Karl Rove's calculations," said one long-time Wall Street Fed watcher, who requested anonymity out of concern he could face the supply-siders' wrath.
Both Feldstein, who chaired the White House Council of Economic Advisers under President Ronald Reagan, and Hubbard, who served in the same post earlier in Bush's term, have been strong advocates for low tax rates and support Bush's agenda of Social Security and tax reform.
But some conservative economists say their records in Washington tell differing tales.
Hubbard is credited with scoring big tax-cut victories while Feldstein is seen as having betrayed the cause by arguing for tax hikes to rein in budget deficits in the 1980s.
Many supply-side economists argue the faster economic growth tax cuts bring raises government revenues enough to cover their cost.
"I'm very much against Marty Feldstein," said Stephen Moore, president of the conservative Club for Growth. "He was always the problem child."
NARROWING THE FIELD?
Fed watchers say it is hard to know who might come under consideration for Greenspan's job. In addition to Hubbard and Feldstein, John Taylor, the U.S. Treasury's point man on international issues, and Fed Governor Ben Bernanke are often mentioned as possible picks.
Indeed, some caution against ruling out Fed Vice Chairman Roger Ferguson, even though he is a Democrat.
But some observers think Hubbard may have the edge, in part because he has earned Bush's trust.
See commentary before Harvard Professor Martin Feldstein got the nod. This potentially is like appointing a judge. His views, which apparently coincide with Bush and Cheney, make him a likely candidate.
Reuters 12-6-04
By Tim Ahmann
WASHINGTON (Reuters) - Conservative supply-side economists, many boasting White House ties, have thrown their support behind former Bush adviser Glenn Hubbard to succeed Alan Greenspan at the Federal Reserve.
But analysts are divided on whether their blessing gives Hubbard an edge in what is often described as a two-man race to take over from Greenspan, who must step down by early 2006.
"There are lots of other people around who are very, very good ... but I think Glenn would be a great choice," said Art Laffer, a founder of the supply-side movement, which sees low taxes on capital as a key to the economy's best performance.
At a post-election conference Laffer sponsored, a consensus emerged among a couple of hundred supply-siders that 46-year-old Hubbard was the best man for the job.
"I think Hubbard is terrific," said Jude Wanniski, another pioneer of the low-tax ideology. "I was telling (Bush political adviser) Karl Rove over and over again ... the only true supply-sider you have is Hubbard."
Along with Harvard University professor Martin Feldstein, Hubbard -- a key architect of President Bush's tax cuts -- has long been seen as a top candidate for Fed chief.
Hubbard, now dean of the Graduate School of Business at Columbia University, plays down such talk.
"I'm really happy where I am now. That's an honest answer," he told Reuters recently. "I've got a wife and two young kids in New York. I have been happy."
JOCKEYEING FOR POSITION
Greenspan, 78, has led the Fed since 1987 and must depart when his term on the central bank's board expires in January 2006. Some think he could leave even sooner.
That leaves President Bush with a choice that could leave an indelible economic mark.
While many observers hesitated to handicap a race when the runners on the White House list are still unknown, Feldstein, 65, is seen by some as having an edge, partly because Hubbard's expertise lies in finance, not monetary economics.
And some analysts are skeptical public support from prominent supply-side economists will raise Hubbard's star.
"I don't know whether that's a constituency that will figure greatly in Karl Rove's calculations," said one long-time Wall Street Fed watcher, who requested anonymity out of concern he could face the supply-siders' wrath.
Both Feldstein, who chaired the White House Council of Economic Advisers under President Ronald Reagan, and Hubbard, who served in the same post earlier in Bush's term, have been strong advocates for low tax rates and support Bush's agenda of Social Security and tax reform.
But some conservative economists say their records in Washington tell differing tales.
Hubbard is credited with scoring big tax-cut victories while Feldstein is seen as having betrayed the cause by arguing for tax hikes to rein in budget deficits in the 1980s.
Many supply-side economists argue the faster economic growth tax cuts bring raises government revenues enough to cover their cost.
"I'm very much against Marty Feldstein," said Stephen Moore, president of the conservative Club for Growth. "He was always the problem child."
NARROWING THE FIELD?
Fed watchers say it is hard to know who might come under consideration for Greenspan's job. In addition to Hubbard and Feldstein, John Taylor, the U.S. Treasury's point man on international issues, and Fed Governor Ben Bernanke are often mentioned as possible picks.
Indeed, some caution against ruling out Fed Vice Chairman Roger Ferguson, even though he is a Democrat.
But some observers think Hubbard may have the edge, in part because he has earned Bush's trust.
Comments
Bob replies:
I believe that the goal is to keep the growth of the money supply, which includes debt, in line with the growth of the economy. The last two heads (Voelker and Greenspan) have done an excellent job. Inflation has been virtually eliminated as a problem, which is certainly good for all the people on fixed incomes. I am old enough to remember the days of double digit inflation and our seeming inability to get it under control: (Nixon/Ford/Carter). I only hope the at the new Chairman agrees with the policies that have worked so well. (as a bit of trivia, did you know that Greenspan was part of Ayn Rand's inner circle).