Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Impeach George W. Bush -- Ignore unavailable to you. Want to Upgrade?

To: Lazarus_Long who wrote (1043)	1/3/2001 3:05:29 PM
From: terryswift	Respond to of 93284

Jim: Technincally, AG can't be fired during his 6 year term; however, any President that wants to undermine the Fed Chairman and force his resignation would not have much trouble doing so. As the economy continues to head south without AG lowering rates, the President could easily level a lot of justifiable criticism at him via surrogates or openly. Once that happens and it becomes clear to the world that the Fed Chairman has lost the confidence of the President, he would resign. I agree with you that the President can't openly fire him, but past Fed Chairman have resigned once it is clear the President will no longer support them. I believe that is how Paul Volker became Fed Chairman. I can't recall who his predecessor was, but with inflation at 14% in 1980, I believe his predecessor resigned after months of heat from Congress and the President and Volker was named as his replacement. With AG's aggressive move today coupled with his statement that the Fed stands ready to make another 1/4 point cut immediately if requested to do so by the regional Fed banks, it's clear he has no intention of losing the confidence of GWB or the markets. Interest rate cuts take a long time to filter through the economy and I believe we will be in a recession before they have any effect. I think the 1st and 2nd quarters of 2001 will show we are in a recession but, of course, we won't know it until the revised GDP numbers come out in the 3rd quarter. There will be enough pain on main street and wall street by then that GWB's tax cut should find lots of support in the hallowed halls of Congress, even by the Dems. I see that Gephardt has seen the handwriting on the wall and said on one of this morning's talk shows we need a tax cut because of the weakening economy. He wants to be Speaker of the House in 2003 and with the economy heading south, if the Dems are seen by the voters to be blocking a tax cut that could stimulate the economy and boost the job market, Gephardt knows he can kiss that dream goodbye. Ditto with Daschle in the Senate. I believe GWB will get virtually everything he wants for tax cuts. The economy is sinking fast and the Dems know it.