During the campaign, candidate Trump constantly railed against Janet Yellen and her Federal Reserve. The Fed was keeping interest rates low because they were "more political than Hillary Clinton," Trump repeated while stumping for votes.
Unfortunately President Trump has a different opinion. Yellen is no longer "toast," and he wants to keep interest rates low. A monetary policy that puts Wall Street, not America, first.
This week Mises Weekends features someone who has witnessed the underbelly of the Fed from the inside. Danielle DiMartino Booth is a former Dallas Fed staffer and author of the new book Fed Up: An Insider's Take on Why the Federal Reserve is Bad for America. She joins Jeff to talk about her years watching Ivy League PhDs make gross and fundamental errors in an almost comically cloistered environment. Have Fed economists even read Mises and Hayek? Do they recognize malinvestment as a byproduct of interest-rate setting? Do they know anything about their own institutional history, or at least enough to recognize how mission creep has turned the Fed into a central planning Politburo? And how will Janet Yellen deal with the inherent tension between raising interest rates and keeping the cost of US debt service in check?