Why Has An “Apolitical” Fed Governor Donated To Hillary Four Times?

Tyler Durden's picture

Any time a Fed president, governor or chairman trots out the trite cliche that the Fed is “apolitical” we can’t help but laugh for one simple reason: not only is the Fed not apolitical, but is very closely ideologically tied with whichever party promotes deficit spending which by definition is inflationary: more deficits mean more debt, means more opportunity for the Fed to show off its “inflation” creating skills; and in a Keynesian world, a stable 2% inflation is the lubricant that drives and stabilizes the financial system – the Fed’s true mandate. There is a reason why central bankers call deflation a “monster” which must be slayed, as per Haruhiko “Peter Pan” Kuroda.

However, it is one thing to note the obvious, it is different to have proof that Fed members have a clear ideological bias. Thanks to recent Fed appointee Lael Brainard, we have just that.

According to Bloomberg, recent Treasury staffer and current Fed Governor Lael Brainard gave $1,950 to Hillary Clinton’s presidential campaign in February, Federal Election Commission records show.

While campaign contributions from federal government employees are legal, donations to a presidential candidate by a senior Fed policy maker are unusual. Brainard is the only member of the policy making Federal Open Market Committee to donate to any federal election candidate this year, according to FEC data.

 

Brainard’s fourth donation since November brings her total contributions to Clinton, the Democratic presidential front-runner, during this election campaign to $2,700, the limit for individual candidate donations in the cycle.Brainard’s previous contributions in that time span, totaling $750, were reported by Bloomberg in March, before the Feb. 1 donation appeared on the FEC’s website.

 

Senator Richard Shelby, the Alabama Republican who heads the Senate Banking Committee, has said the contributions “call into question the political independence” of senior Fed officials.

Fed Chair Janet Yellen said in March that legal donations from central bank employees don’t undermine the Fed’s standing as a non-partisan agency. Fed spokesman David Skidmore declined to comment.

ny time a Fed president, governor or chairman trots out the trite cliche that the Fed is “apolitical” we can’t help but laugh for one simple reason: not only is the Fed not apolitical, but is very closely ideologically tied with whichever party promotes deficit spending which by definition is inflationary: more deficits mean more debt, means more opportunity for the Fed to show off its “inflation” creating skills; and in a Keynesian world, a stable 2% inflation is the lubricant that drives and stabilizes the financial system – the Fed’s true mandate. There is a reason why central bankers call deflation a “monster” which must be slayed, as per Haruhiko “Peter Pan” Kuroda.

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