Jon Najarian discusses Biden’s decision to renominate Jerome Powell for another term in the Federal Reserve
Najarian said, “I went back to 1982 - 2020, the average rate of inflation in the United States, the way they measure it, they being the Fed, is 2.7% average. There have been a lot of years where it has been less than two. To see if pop up to 6.2% which is what we are at right now, year over year, is really noticeable and something that we would hope would turn back down. Obviously, it is one of the reasons Jerome Powell has been renominated to the Fed. The president decided he did not need to introduce more volatility. Lael Brainard, the woman from San Francisco Fed is certainly qualified, very smart. She’s the vice-chairman now.”
Najarian also said, “ It was up to decide if he would nominate her for the J policy. I think it was smart that he didn’t. I think she is a little bit uncertainty that we did not need to introduce to the market. We were pretty sure of how she would run it, but we don’t know because she has not sat in the seat. When people sit in that seat with that much power, they might change ever so slightly or change a lot. The market and the President’s polling numbers did not need that. I think that is why he said, well, I am going for the safe pick. Jay Powell is a smart guy. He wants the job. He’s going to keep rates as low as he can for as long as he can because he knows we are like in an interest-only mortgage. We’re never going to pay back the money the government owes, but we are going to keep paying the rent. Our people keep paying the interest-only side of the mortgage. We want the interest to be as low as possible.
When asked, about who will make the unpopular decisions to fix the economy. Najarian said, “ The only thing I can think of is the masks mandates and lockdowns. This caused a lot of people to step away from their jobs that they liked because they refused to get vaccinated, booster shots, or second shot. These folks were pushed out of their jobs.
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