When I saw this article on CNBC announcing Federal Reserve Bank of Philly President, Charles Plosser’s retirement this morning I thought I was dreaming. I had to pinch myself to be sure I was awake.
There is one caveat to the excitement, however. The article is underscored by the announcement of the co-chairs of the executive search committee to replace him as quoted below. The next time any media spin tries to convince you that the regional Fed presidents are elected by local business leaders, you’ll know that the election is pretty much a sham.
James E. Nevels, chairman of the Bank’s board of directors and head of The Swarthmore Group, will co-chair a search committee with Deputy Chairman Michael J. Angelakis, vice chairman and CFO of Comcast Corporation.
We really need to reform this process if we’re to have the regional presidents voting on monetary policy; and now is as good a time as any. We do not want another irrational hawk voting on policy who thinks there is no possible state of the universe in which policy could be too tight.
Meanwhile, I’m just going to enjoy this news for today. It’s a gift to Market Monetarists everywhere.
PS: Here’s a video interpretation of what it would be like if I could attend the retirement party.