Criminally Conflicted Former Fed Governor Frederic Mishkin on Fed Credibility
In the largest LOL I've had in quite some time, former Fed governor Frederic Mishkin seems to believe the Fed's "credibility" is under historic attack, according to this latest piece from CNBC:
The Federal Reserve is undergoing what former central bank governor Frederic Mishkin is calling an unprecedented level of attacks caused by its inability to articulate a clear message regarding its multitrillion-dollar monetary policies.
In a CNBC interview, Mishkin said the Fed has done a poor job justifying its efforts to buy Treasurys and other securities as a way to stimulate the economy—a policy often referred to as quantitative easing.
Washington officials have sharply criticized the central bank, with some recently saying that the Fed ought to lose its dual mandate of controlling inflation and ensuring maximum employment, and focus solely on inflation.
"Monetary policy is never easy. You're always the whipping boy. The question is the degree," he said. "Now you're getting whipped with a little bit harder lash than usual. But you've got to make the tough calls and you've got to provide leadership. This is what you do with central banks."
Upon reading this, TLP wondered out loud if his version of the CNBC article was missing the opening paragraph that begins with "Mishkin, who collected $125k for giving Iceland's economy a nice warm blowjob just before its balls fell off ..." and I have to admit I had the exact same thought. If anyone is equipped to talk about Fed credibility, it's the asshat who grabbed $125,000 for writing some fake paper about Iceland's financial stability and then turned around and changed the title of the paper when the truth came out and Iceland collapsed. With qualifications like that, it's no wonder he's criticizing the Fed's handling of their latest PR disaster. Where's that Enron PR hack when the Fed really needs her?
Moreover, the central bank has gotten itself in trouble politically because "the way they communicated this whole strategy is very problematic," Mishkin said.
"The credibility of the Fed has been hurt not only by the issue of not putting this in a long-run context, but secondly by the tremendous dissension from the committee, which again is unprecedented," he said. "I'm a little surprised there hasn't been more done internally to rein this in."
HAHAHAHAHAHA LMAO and ROFL!!!!!!!1! I suppose having a Fed alumni collecting huge fees for writing bogus papers does nothing to damage the Fed's credibility then?
My bounty for a Janet Yellen bitchslap remains at $50,000 for the first FOMC member reach across the conference table and knock her upside the head but I'll throw in an extra $5,000 if anyone's willing to head over to Columbia and give this jackass a good smack.