00:00:00
The Federal Reserve legally is
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structured a lot like the Supreme Court
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where the Chief Justice is just one vote
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among nine and the Fed chair is just one
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vote among seven or 12 depending on the
00:00:10
committee. But in its long history, it
00:00:13
doesn't act that way. So the chair has
00:00:15
much more influence over shaping the
00:00:17
agenda for example but also view the
00:00:21
chair has always viewed his or her role
00:00:23
as shaping a consensus so that we don't
00:00:26
have a a norm where the policy messaging
00:00:30
coming out of the Fed is incoherent to
00:00:31
the rest of us. The new Fed chair
00:00:35
will almost certainly not be as good at
00:00:37
consensus building as Jerome Pal. And
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that's because J Pal is he's the Michael
00:00:42
Jordan of Federal Reserve consensus
00:00:44
building. This is his been his primary
00:00:46
target. He has been very good at it. He
00:00:49
knows how to use the various levers of
00:00:50
power available to him to forge that
00:00:53
consensus. And even with the odd descent
00:00:55
or even split descent, he has succeeded
00:00:57
in forging a consensus during times of
00:00:59
real uncertainty that his successor
00:01:01
won't be as good at that.
