An Open Letter to Jerome

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Hey, Jay, whadaya say? Tim Knight here. I know we’ve had our differences, but I wanted to offer you some unsolicited advice.

I am not sure if you’re aware of this, but our President hasn’t pulled any punches when it comes to his opinion of you and your policy. Here, I’ll save you some time looking it up:

So since you and your entourage are going to enjoy your annual taxpayer-funded junket to Jackson Hole, I suggest you make your keynote speech short, sweet, and surprising. To wit:

Ladies and gentlemen, I’ll come right to the point. As you know, our dual mandate consists of price stability and full employment. No more. No less. I’ve scrutinized our charter carefully, and nowhere is asset inflation mentioned, most particularly equity asset inflation. Having said that, I am here to announce publicly and plainly that the machinations of global equity markets, including, of course, America’s, is of no concern to us. Our dual mandate is all there is, and the only data we shall examine will pertain to those two realms exclusively. Thank you.

And that’s it! No fuss, no muss, and I guarantee you’ll get a lot of excited press coverage. And although the President will hate you more than ever, I can profess my undying love if you get the gonads to make such a speech. So good luck this week, Powell of mine.

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