Following footage depicting Trump’s favorite for the open seat on the Federal Reserve making racist and misogynistic comments, Trump will likely tap Judy Shelton for the position instead of Stephen Moore, Forbes reports.
But Shelton, an economic adviser to President Trump, is a proponent of economic policies that Forbes describes as not “just arcane, destructive, and out of the mainstream,” but even in direct contradiction with Trump’s policy agenda.
In a recent paper for the CATO Institute, she even goes so far as to question the legitimacy of the entire banking system and the U.S.dollar itself:
"The current monetary regime permits governments to knowingly distort exchange rates under the guise of national monetary autonomy while paying lip service to avoiding trade protectionism," she wrote.
"It empowers central banks to channel the benefits of monetary policy decisions to some people at the expense of others, pitting wealthy investors against average savers. It facilitates cheap government borrowing. The shift toward increasing government influence over economic outcomes is anathema to the free market doctrines propounded by (Milton) Friedman.
"If the United States does nothing to restore a rules-based approach to international monetary relations, our values come into question. We lose credibility by failing to challenge an international monetary anti-system that condones cheating by governments and central banks."
In essence, Shelton wants the U.S. to return to a commodity-linked currency similar to the gold standard, even though the precise reason the U.S. abandoned it (as did the rest of the world) was to give officials more control over the economy.
And, Forbes observes, if her policies had been enacted during the Great Recession, the time in which she was most fervently advocating for them, they would have cost countless losses in jobs and wages.
For a businessman that claims to know much about the economy, President Trump has picked yet another Fed nominee with questionable qualifications.