By SA Multimedia :
Welcome to SA Multimedia Digest, where we combine videos and podcasts from across Seeking Alpha's contributor base into a single weekly article.
Thought we'd take a break from the whipsaw action in the markets to focus on two strong podcasts we published this week that focus on the Fed from two experts in the field.
First we have Danielle DiMartino Booth, who appeared on Chris Martenson's podcast to discuss new Federal Reserve Chairman Jerome Powell and what his appointment means for the markets.
Look, this is a message that market participants do not want to hear: It is not the Federal Reserves job to put a floor under risky asset prices.Compare and contrast Jerome Powell's silence in the wake of the flash crash on his first day at work to Alan Greenspan -- who got on an airplane the day after the Black Monday crash of 1987, canceling an appearance he was to have made, and reassuring the markets with a statement on Tuesday morning that the Federal Reserve was standing by and ready and willing and available to satisfy any kind of disruption in the banking and financial systems. That was the day -- October 20, 1987 -- that the Greenspan put was born.My issue with the mainstream media these past few weeks is that they have been insistent on the fact that there is going to be a Powell put to follow the Greenspan, then Bernanke, and then Yellen put. I've been pushing back against that conventional wisdom, mainly because of A) the release of the 2012 FOMC transcripts when we finally got to hear words coming out of Powell's mouth which showed that he was no pushover and B) the fact that he worked for a $1 salary to educate the Congress on the perils of the Untied States defaulting on its debt.Powell himself has stated that was concerned that quantitative easing would end up being habit-forming for the markets.So I read his silence these last few days as prudent and cleaving to the original intention of the Federal Reserve being lender of last resort; not babysitter to the stock market.
Second, we have Mike Konczal who appeared on David Beckworth's excellent Macro Musings Podcast series this week. Mike recently co-authored a paper with J.W. Mason titled, "A New Direction for the Federal Reserve: Expanding the Monetary Policy Toolkit."
On the the show he discussed the progress of financial regulation, the Fed's performance over the past decade, and new tools the Fed could utilize to better stabilize the economy in the present and future.
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