Last night the would-be Republican nominee for President referred to the economy with the same adjectives he used to describe entertainment footnote Rosie O'Donnell. "Big, fat, ugly bubble, " was how Mr. Trump analyzed the state of the US economy, throwing in a few innuendo laden half sentences about Fed Chair Janet Yellen. Nothing unifies the populist movement like Fed bashing.
Always short on details, Mr. Trump then let the armchair conspiracy theorists (having already outed the obese, bedridden, hacker crowd) fill in the gaps by chastising both low interest rates and the consequences of raising them. Surprisingly, neither candidate laid out even a HS sophomore's argument on the optically creepy and monetarily sketchy practices of IOER and QE bond buying regimes.
I think campaigns are good times to press candidates about both Federal Reserve mandates and monetary policy execution. Pat answers protecting Fed independence were all the rage not long ago when Alan Greenspan graced the cover of Time as "World Savior." Today, the long successful career of Dr. (multiple ) Yellen is called into question by the possibility of something yet to occur. Truth be told, we do not know Mrs. Clinton's philosophy of central banking, but her husband took a fortuitous pragmatic approach (cut the deficit and Greenspan cuts rates quid pro quo). The financial tinder of a balanced budget and good intentions on housing would play out terribly later. Trump, however, shows the dangerous populist bluster of CB neanderthals.
The Fed has a long history of pumping up and wrecking economic expansions. The "soft landing" is as rare and mysterious as a Loch Ness sighting. Someday, I'd like to be able to vote for a candidate that actually understands the way the financial system works.
Post Script: Who would be Treasury Secretary in either administration. Considering Jack Lew's ticket was punched for being COO at Citi from 2006-2008 overseeing an historic mudslide into insolvency for an institution founded in 1812 !