Just when I was nearly convinced that Jeb Bush, as he says, is not his brother nor his father, this article published late yesterday by Reuters snapped me back into the bad Bush economics reality, as Jeb has apparently stacked his campaign’s economics department with two men who have been featured in some of my more colorful posts.
Glenn Hubbard and Kevin Warsh, veteran Republican economic policymakers and critics of the Fed’s ultra-loose monetary policy, have emerged as top economic advisers to likely presidential candidate Jeb Bush, Republican sources said on Tuesday.
Hubbard, who served as the top White House economist for former President George W. Bush, was one of the architects of Bush’s tax cuts. Hubbard also advised Mitt Romney in his 2012 bid for the presidency and together with Warsh was mooted as a possible Treasury secretary if Romney made it to the White House.
During his tenure at the Federal Reserve, Warsh worked closely with then-Chairman Ben Bernanke battling the 2007-2009 financial crisis, serving as a conduit for communications with Wall Street firms.
Warsh has criticized the Fed’s aggressive monetary easing, and has said he was worried about the risk of a financial bubble.
“The Fed has been spoiling financial markets since the depths of the financial crisis,” he told CNBC on Tuesday.
But Warsh disagrees with Republicans who have called for greater congressional oversight of the Fed’s monetary policy decision-making.
For his part, Hubbard has said the Fed’s initial bond buying helped stabilize the U.S. economy after the financial crisis, but later on the securities purchases failed to do much to lift the economy and posed too many risks.
Warsh was among the Fed’s richest top officials when he joined it in 2006. Financial disclosures released in 2010 stated that as of the previous year, his wife Jane Lauder, granddaughter of the founder of the Estee Lauder cosmetics company, had assets worth at least $66.3 million. Warsh listed assets worth between $702,000 and $1.5 million.
Aside from the short bios, Reuters labels Warsh as an inflation hawk. Given the situation with inflation lately, perhaps Warsh is obsolete and team Bush is intent on fighting the last war instead of moving on with economic policies that are appropriate for the times. Never, ever, send a hawk to do the job of a market monetarist.
Nevertheless, I bolded Warsh’s financial information provided by Reuters which is rather dated. Warsh’s wife is now a multi-billionaire…. makes me wonder about things like paymasters and all of that because it’s not like Warsh is one of THOSE people; if you know what I mean. As a side note, I’ve a longstanding boycott of Estee Lauder products.
And speaking of paymasters, the FEC is fit to be tied over Bush election antics of not formally announcing his candidacy while funneling millions into 501(c)’s. It says that not declaring to be a candidate does not mean he isn’t one while performing the acts of one. It will be interesting to see if we’ll ever find out who the paymasters are. And I certainly wouldn’t have the nerve to be shocked if Mr. Warsh heads up the list. He seems to be quite fond of quid pro quo.
HT: Marcus Nunes