This Week in Economics: 3 Stories You Should Know About

This week we had some interesting economic developments in both monetary policy and regulatory policy. Here is a look at the top stories you should pay attention to: 1) House Democrats vote to raise minimum wage to $15 per hour. Yesterday House Democrats voted almost unanimously in favor of raising the federal minimum wage to $15 an hour. Only six House Democrats voted “no” while only three House Republicans voted “yes.” You can see those who bucked the party leadership here. Putting aside the fact that the Congressional Budget Office estimates this legislation would destroy 1.3 to 3.7 million jobs,

Who Should Trump Appoint to the Fed? Here’s a Perfect Choice

Federal Reserve watchers are eagerly awaiting President Trump’s appointments for two vacant positions on the central bank’s board of governors. While you won’t see much discussion about these candidates on cable news, make no mistake — filling the Fed Board of Governors will be among the most critical personnel and economic decisions that the Trump administration makes. For those of us who wish for a more transparent Fed that remains laser focused on maintaining a stable, sound dollar, out of all of the rumored candidates, one name inspires significantly more enthusiasm than the rest: Dr. Judy Shelton. As the New

The One, Serious Problem with Trump’s Budget

Last week, President Trump released a budget plan that was widely praised by conservatives for reining in future spending. However, buried near the back of the budget (page 51) is one item in need of further attention — the Trump administration’s interest rate projections. Under Trump’s budget, interest rates on 10-year bonds are projected to rise from 2.7 percent currently to 3.8 percent in 2027. While the 1.1 percent rise in interest rates over the next decade is in accordance with Blue Chip forecasts (which could explain why the figures were chosen for budgetary purposes), the fact that Trump’s budget

High Stakes for 2016: Judy Shelton for Fed Chair to Make America Great Again

In The Daily Caller, freelance writer Johannes Schmidt writes “On November 8th I’m Voting For Our Next Fed Chair.” It’s an especially astute column. While many commentators correctly have focused on the effect of the election outcome on appointments to the Supreme Court, too few have focused on the next president’s appointments to the Fed. This also is of capital importance. Schmidt writes: The policies implemented by the Fed are especially important (albeit often insidious) because money is our society’s most basic medium of exchange. The manipulation of its value affects every day citizens both in the short and long

Are Fed Policies Hurting the Middle Class?

In his post earlier this week on Chris Christie’s tax reform remarks in New Hampshire, Steve Wagner drew attention to some interesting comments the governor made on the Federal Reserve.  To wit: The Fed’s easy money policies and the president’s anti-growth policies have made the rich even richer and made our middle class work longer and harder for less pay and less promise for their future. Steve writes that Christie’s criticism of the Fed may have been motivated by his sensing an opportunity to seize on the issue, given other candidates’ lack of attention to it.  This may very well be