The alleged disappearance of Joe Biden and Donald Trump from the presidential race is now being covered by commentary in the major political publications. In the walk is the question of who Biden’s leader may appoint if Democrats win another word on the Federal Reserve Board of Governors.
Every group wants to nominate economists to guide the Federal Reserve’s financial strategy. Sadly, the incoming Democrat leader appears to be adamant about ignoring knowledge and ability and placing a premium on identity politics. Many people are suggesting that the adjacent assassination attempt may have been the effect of the Secret Service not choosing the best candidates for the position. The Biden administration has established the precedent of making visits based on identity. Risky outcomes based on unsound economic theories like Modern Monetary Theory ( MMT ) could fatally harm the US economy with hyperinflation or sustained economic depression if the Fed is dominated by unqualified candidates.
The Federal Reserve is the country’s central bank system, and it is in charge of upholding the country’s economic policy. The three main goals of its economic policy are to increase job, maintain rates, and average long-term interest rates. The Federal Reserve has historically had three main tools for achieving these objectives: setting the discount rate ( interest rate ) that banks are required to pay for borrowing directly from the Fed, conducting open market transactions ( buying and selling Treasury instruments ), and establishing reserve requirements ( requiring banks to hold a percentage of deposits on hand in the bank ).
The Federal Reserve system is governed by a seven-member table known as the Board of Governors. The seven rulers are chosen for tilted 14-year conditions, with each new presidential term being made up of two candidates for the table. One of the seven seats and four-year terms as chair of the Fed ensure that each presidential term also includes the appointment of a new chair ( or reappointment of the current chair as Biden did in 2022 ).  ,
In reality, during each four-year presidential term, there are typically more than two seating to complete because Fed governors can and do retire at any time, in contrast to the Supreme Court whose members typically serve for years.
The current Fed committee is made up of four Democrats and three Democrats, and the existing chair is Jay Powell, a Republican. Adriana Kugler, a Democrat, is due to possess her name lapse in 2026. She may be replaced by the next senator for a 14-year term that expires in 2026. No party is likely to re-appoint him, but Chairman Powell’s term as governor ends in 2028, and neither party’s word will probably end in 2026.
So, the next president will be able to choose a new couch in 2026 and a new government in 2028. In addition to filling any further jobs created by withdrawal, the next management will at least change one government from each group.
However, the Fed is in danger of having appointments made based on factors other than significance, which could lead to poor monetary policy and soaring inflation. Instead of attempting to assign the most competent person for the job, the Democrat Party will continue to pursue consultations based on skin color, gender, and sexual preference.  ,
Lisa Cook, who Biden appointed in 2022 and whose name runs until 2038, is the worst illustration of this pattern in the Federal Reserve. Cook was formerly a professor of economics at Michigan State University. Before her Fed interview, her main scientific work sought to establish the existence of a rapid decline in the number of dark inventions in the early 20th centuries, the indication of which was based on shaky information. Beyond this doubtful release, Cook’s application is more uninteresting, suggesting she was almost surely appointed based on her personality characteristics.
Cook demonstrates the threat of appointing individuals based on their identifying traits rather than significance. If this pattern continues, the Fed will end up being dominated by unfit persons, probably promoting poor economic policies. Modern Monetary Theory is one of the most perilous economic policies being promoted by Democrats. MMT, which its critics refer to as” Magical Money Tree,” basically claims that the government can and should print as much money as it wants and that it should use this significant increase to finance all the high-dollar projects leftists want the government to fund.
In reality, every dollar of government spending must come from somewhere. It either comes from taxes, from selling off government assets such as real estate or gold/oil reserves, or from borrowing ( issuing Treasuries ). However, MMT supporters believe that because the government is essentially the only one printing money, it can circumvent this requirement.  ,  ,  ,  ,  ,
Because supposedly the economy is never operating at full capacity and full employment, so there must be slack in the economy to stop hyperinflation, claim MMT supporters who believe printing more money wo n’t lead to higher inflation. Additionally, MMT supporters claim that raising taxes can still prevent inflation if the economy continues to function at full capacity. In essence, MMT supporters argue that the balance between monetary and fiscal policy should be made: the Fed should regulate inflation by adjusting taxes, and politicians should run the money supply.  ,
Although the U.S. has yet to embrace MMT, nations that have followed similar theories of uncontrolled government spending have experienced flimsy inflation. Just look at Argentina, Venezuela, Zimbabwe, and others for recent examples.
In comparison to a few years ago, MMT is now much less talked about and much less popular in the United States. This is primarily as a result of the high inflation that America has experienced since 2020. Despite the significant rise in government spending following the global financial crisis in 2008, MMT gained traction in the 2010s largely because there was no significant, immediate increase in inflation during that time.
However, after the lockdowns, this increase in government spending eventually caught up with us. Although inflation is not as high in 2024 as it was in 2021-2023, there has been a significant increase in the cost of almost everything that people in our nation need in the 2020s.  ,  ,  ,  ,  ,
Hopefully, the rising cost of living will not soon be forgotten, but if the Democrats win again in 2024 and appoint more unqualified Federal Reserve members, the outcomes of those decisions could be disastrous for the American economy, making the upcoming presidential election more crucial than ever.
Tim Whitehead is a writer with a background in law and finance, and he has worked as a financial analyst and derivatives trader.
