I’m surprised by the naiveté of Mr. Luskin in assuming that Republicans welcome a (truly) more objective rule in setting interest rates. Consider that in December 2016 the newly appointed (January 2017) Vice Chairman of the House Subcommittee on Monetary Policy and Trade Roger Williams whined about only the second one quarter-point interest rate rise in a decade to a level which is still well below what most rules-based advocates would calculate. Does conservative dogma include perpetual, unwarranted interest-cost subsidization for all borrowers and debtors?
If the Trump administration is so chaotic, why are markets so resilient and risk-embracing?
In the course of my hunt for Donalds, I happened to connect with Donald Luskin, a Chicago-based economic strategist who supported Trump in the election. His firm, TrendMacro, was by his estimation one of the earliest predictors of a Trump win. So does Luskin love all the attention he’s getting just because of his first name? “I can’t think of a single case where anyone’s ever raised it,” he said. Still, he’s worked it into a few jokes, sure.
When is a tax cut a tax hike? When refiners and other firms get hit with the BAT.
Post-election animal spirits drive a big beat, while the Fed is comforted by small wage gains.