Monday, June 19, 2006

The next Fed chair

Steve Liesman has an intriguing idea about what it takes for the chairman of the Federal Reserve to establish credibility:

This may sound absurd (but might not be in the context of Bernanke), but think of the Biblical story of Abraham and Isaac. Only by showing that he was willing to sacrifice his son could Abraham prove the credibility of his faith. This is the test that markets are putting Bernanke through.

Note, he doesn't have to cause a recession, just make markets believe 100% that he will to fight inflation. And I mean 100%. There is no wiggle room.

Hmmm....That gets me thinking.

If we really need a Fed chair who is willing to make any sacrifice, ruthlessly do whatever it takes, no matter how draconian, to further the national interest, I know the perfect candidate: Jack Bauer.