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Obama Nominates FX Expert To Fed Board Amid Strong Dollar Worries

Tyler Durden's picture




 

Perhaps someone thought Janet Yellen’s congressional testimony wasn’t dovish enough last week because on Friday, the "strong USD is a headwind for growth" warning popped up again, this time in the form of a post over at the NY Fed’s Liberty Street Economics blog. 

"The recent strengthening of the U.S. dollar has raised concerns about its impact on U.S. GDP growth," the authors proclaimed, before saying that according to their calculations, "a 10 percent appreciation in one quarter shaves 0.5 percentage point off GDP growth over one year and an additional 0.2 percentage point in the following year if the strength of the dollar persists." So a strong dollar is bad, and a persistently strong dollar is even worse.

So no liftoff? After all, one wouldn’t want to derail the equity rally economic recovery by giving the dollar an excuse to strengthen even further. Or maybe this is just inconsequential pontificating by a researcher and a junior analyst. 

But if the Fed is truly concerned that a rate hike cycle might exacerbate the supposed drag on the economy exerted by the strengthening dollar and that tightening when the rest of the world is immersed in competitive devaluation could create FX headwinds for US exports, then why not nominate a currency strategist to the Fed board to weigh in on the subject? Well, as it turns out, that’s precisely what the Obama administration did on Monday. Here’s WSJ:

President Barack Obama will nominate University of Michigan economist Kathryn Dominguez for a seat on the Federal Reserve’s Board of Governors, the White House said Monday.

 

Ms. Dominguez is a professor of public policy and economics at the University of Michigan’s Gerald R. Ford School of Public Policy, having previously taught at Harvard University’s John F. Kennedy School of Government. She has a doctorate in economics from Yale University and her academic specialties include international financial markets and foreign exchange-rate behavior.

 

Two seats on the seven-member board are vacant. Mr. Obama in January nominated former Bank of Hawaii Chief Executive Allan Landon to fill the other seat.

 

Ms. Dominguez’s nomination could clear the way for the Senate to hold hearings on both nominees. Senate Banking Committee Chairman Richard Shelby (R., Ala.) had said he wouldn’t schedule a confirmation hearing for Mr. Landon until Mr. Obama put forward a name for the other seat. 

 

A Shelby spokeswoman said Monday that the senator would "carefully review the [Dominguez] nomination and the committee will consider it at an appropriate time."

 

Ms. Dominguez has tackled some complex issues in her academic work. In one 2011 working paper, she and her co-authors found countries that accumulated large amounts of foreign currency reserves before the financial crisis enjoyed faster economic growth than those that did not. A paper in 2014 looked at the interactions of exchange rates, capital controls and foreign reserves during the financial crisis.

 

In a 2013 working paper, she and a co-author said financial and fiscal developments in Europe, along with "self-inflicted wounds from the political stalemate over the U.S. fiscal situation," helped explain why the U.S. recovery had been so slow.

We'll reserve judgement for now, but you can review Dominguez' CV below (her contact information is there and we're sure she would welcome questions from Zero Hedge readers), and we've also included a video with her take on the "recovery" - on the surface, Dominguez certainly doesn't seem too enthusiastic about the economic rebound.

Kd Resume

 

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Tue, 07/21/2015 - 14:14 | 6337961 lehmen_sisters
lehmen_sisters's picture

You can't make this shit up. " We have to devalue our currency to recover our economy"....What planet am I on...Hello?

Tue, 07/21/2015 - 14:17 | 6337973 nope-1004
nope-1004's picture

Should have hired Blythe Masters.  She knows how to rape and pillage.

 

Tue, 07/21/2015 - 14:30 | 6338067 Kaiser Sousa
Kaiser Sousa's picture

this must be the reason why the Dow is now coming off the lows at exactly the same time it did yesterday - the las 2 hours of trading...

it will rest right below a 1% loss for the day - just watch...

oh, and S&P has upgraded Greece debt....

to the moon baby........

 

Tue, 07/21/2015 - 15:13 | 6338254 Stuck on Zero
Stuck on Zero's picture

There's a great way for the government to put more dollars into circulation and devalue against other currencies: quietly acquire lots of gold. It's working for China. 

Tue, 07/21/2015 - 15:41 | 6338393 Son of Loki
Son of Loki's picture

Rekovery?

 

What is she talking about ... the upper 5% ?

 

Someone needs to go over there and shove a pile of green shoots into her mouth.

Tue, 07/21/2015 - 15:53 | 6338448 Theosebes Goodfellow
Theosebes Goodfellow's picture

~"Ms. Dominguez is a professor of public policy and economics at the University of Michigan’s Gerald R. Ford School of Public Policy, having previously taught at Harvard University’s John F. Kennedy School of Government. She has a doctorate in economics from Yale University and her academic specialties include international financial markets and foreign exchange-rate behavior."~

Oh goody, another Keynesian for the Fed!

Tue, 07/21/2015 - 16:13 | 6338528 GoldSilverBitcoinBug
GoldSilverBitcoinBug's picture

Bullish.

Meanwhile Gold on the 1100 handle lowest since 5 years...

Chinese happy to buy it for nothing.

Tue, 07/21/2015 - 15:13 | 6338138 oldmanofthesee
oldmanofthesee's picture

A better FX advisor, would have been Kathy Lien, instead of another academic economist.

Tue, 07/21/2015 - 21:28 | 6339790 Chris88
Chris88's picture

I wish Blythe would dominate me...seriously that gets me hot thinking of her in that role.

Tue, 07/21/2015 - 14:36 | 6338101 DavidAKZ
DavidAKZ's picture

you are on 'planrt debt'

Tue, 07/21/2015 - 14:51 | 6338176 The Darwin Mode
The Darwin Mode's picture

"What planet am I on...Hello?" --lehmen_sisters

Planet Keynesia -- the International Astronomical Union has been trying to call it a dwarf planet for the past decade, but a resurgent Old Guard insists that an exponential expansion phenomenon makes it worthy of full planetary status.

Tue, 07/21/2015 - 14:15 | 6337963 Bunghole
Bunghole's picture

Dual citizen of Amerikkka and Ireland.

Tue, 07/21/2015 - 14:15 | 6337970 Two-bits
Two-bits's picture

Fuck this bitch...from UofM

 

Prior to coming to the Gerald R. Ford School of Public Policy and theEconomics Department at the University of Michigan, she taught at the Kennedy School of Government. She has also taught at the Woodrow Wilson School of Public and International Affairs, the London School of Economics, and the Goldman School of Public Policy at UC Berkeley and worked as a research consultant for the Federal Reserve System, theInternational Monetary Fund, the World Bank and the Bank for International Settlements.At the Ford School, Kathryn teaches finance, macroeconomics and international economics. She received her Ph.D. in Economics from Yale University.

 

Devaluation expert on board. Check.

Tue, 07/21/2015 - 14:37 | 6338099 Two-bits
Two-bits's picture

And digging a little deeper...

On the editorial board of the Encyclopedia of Globalization...Seriously. 

Look at the greatest hits of this manual of world domination:  (emphasis mine)

The Wiley-Blackwell Encyclopedia of Globalization contains over 600 entries on the essential topics of Globalization and is the definitive reference resource for students, researchers and academics in the field.

  • Offers clear and concise explanations of the key concepts of Globalization
  • Arranged in A to Z format
  • Includes entries on concepts derived from across the social sciences, from sociology and anthropology to political science, economics, and human geography
  • Examines the founding theories as well as the realities of globalization today
  • Covers the essential topics in the study of globalization, including agency-structure, Americanization, anti-globalization, Bretton Woods, coca-colonization, empire, Euro crisis, ethnic cleansing, exploitation, feminization of poverty, genocide, global warming, nation-state, neo-liberalism, oil, post-globalization, Qaedaism, rape, sex work, sport, terror, transnational corporations, Twitter Revolution, water crisis, Web 2.0, Wikileaks, World Social Forum and, Zapatistas
  • Includes a number of key documents listed as entries such as the Kyoto Protocol and The Universal Declaration of Human Rights

 

The time is coming very soon i think for a major change.  This cunt is on the short listf for her head being  fitted for a sharpened landscape timber.

Tue, 07/21/2015 - 15:14 | 6338257 disabledvet
disabledvet's picture

"Bail out the Goldmanite scum you fucking whore or get fucked inn the ass by a Gorilla" appointment would appear.

Rahmbo been sent to that secret detention facility in Illinois yet?

Oh, let me guess..."the whole thing was his idea."

The Gitmo of the North!

Oh, yeah...can't wait to move to that State!

Tue, 07/21/2015 - 14:47 | 6338136 madcows
madcows's picture

Yup.  The Gerald Ford School of Public Policy.  If i went there, i don't think i'd stand infont of the moniker.

the only thing worse than that could be the Jimmy Carter School of Ambassadorship or the Barrack Obama School of Pro Muslim Transparant Anti White Social Engineering Justice League of Americanism School for the mentally impaired. 

If I had a Daughter, she'd go to the Gerald Ford School of public policy.

When I see Gerald Ford, all i can think about is Tim Conway.  Separated at Birth.  Gerald Ford, Dorf or Golf, er Public Policy.

Tue, 07/21/2015 - 14:47 | 6338155 Two-bits
Two-bits's picture

The McCain/Graham Institute for conciencious objectors.

 

Tue, 07/21/2015 - 15:34 | 6338367 roadhazard
roadhazard's picture

Just think, if Graham is elected he can be President and First Lady at the same time. What a savings.

Tue, 07/21/2015 - 15:44 | 6338410 Son of Loki
Son of Loki's picture

... the Clinton Correctional Facility for Maximum Security Criminals....

Tue, 07/21/2015 - 19:12 | 6339270 ISEEIT
ISEEIT's picture

The bitch has a 'pedigree' like that, and yet all the obozo kids are just so brown shirt style certain that he's the most amazing thing since donkey kong...?

Now I understand why the zombie theme has such an allure.

 

We be zombies....

 

Beats 'we be demoncrats' right?

 

BTW>> Dimwit..

I'm not a republican.

Tue, 07/21/2015 - 14:15 | 6337972 ted41776
ted41776's picture

what fucking racist is trying to imply that everything isn't awesome!??!??!!?

Tue, 07/21/2015 - 14:16 | 6337974 BoPeople
BoPeople's picture

Tackled complex issues? Don't make me laugh. Maybe they should mention something of value that she has done.

Tue, 07/21/2015 - 14:16 | 6337978 thatthingcanfly
thatthingcanfly's picture

I'd tongue-punch her fart box.

Tue, 07/21/2015 - 14:17 | 6337981 lehmen_sisters
lehmen_sisters's picture

^This. 

Tue, 07/21/2015 - 14:22 | 6338019 NoVa
NoVa's picture

the Wookie is gunna get maddddddddd

 

Memo to Oblamo - Do not take another selfie with a tall blond!

Tue, 07/21/2015 - 14:21 | 6338006 mtndds
mtndds's picture

LOL,  comment of the day.

Tue, 07/21/2015 - 14:22 | 6338009 PartysOver
PartysOver's picture

I'd tongue-punch her fart box

Have at it.  I no longer do charity work.

Tue, 07/21/2015 - 14:53 | 6338180 madcows
madcows's picture

no thanks.  This country has enough democrat women in charge.

but with teeth like hers, John Kerry is sportin a Mr. Ed sized woody.  Hey, there Philly. you wanna go out for carrots some time?  Maybe a sugar cube and some alfalfa?  Why don't you giddy up over here and I show you why they call me long John the Donkey schlong.

Tue, 07/21/2015 - 15:01 | 6338201 Eirik Magnus Larssen
Eirik Magnus Larssen's picture

I normally take pitty on desperate individuals, but in the case of the people of this forum I will make an exception.

Tue, 07/21/2015 - 14:16 | 6337979 Duc888
Duc888's picture

 

 

 

Just print

 

 

Oh wait, they did that already.  That's all they can do.  Produce more debt.

Tue, 07/21/2015 - 14:18 | 6337985 Roving reporter
Roving reporter's picture

The dollar's strength is what worries him?  What about getting a woman on the 20 dollar bill... now thats important!!!

Tue, 07/21/2015 - 14:18 | 6337986 franciscopendergrass
franciscopendergrass's picture

bullish gold

Tue, 07/21/2015 - 14:18 | 6337987 TalkToLind
TalkToLind's picture

Fuck clothes, the emperor has no skin.

Tue, 07/21/2015 - 14:23 | 6338026 large_wooden_badger
large_wooden_badger's picture

The emporer is an empty sack

Tue, 07/21/2015 - 14:21 | 6338007 The Delicate Genius
The Delicate Genius's picture

End the Fucking Fed.

Tue, 07/21/2015 - 14:22 | 6338018 22winmag
22winmag's picture

Yeah right, maybe an expert in financial witchcraft...

Tue, 07/21/2015 - 14:22 | 6338021 large_wooden_badger
large_wooden_badger's picture

Impressive CV, but it really amazes me how far you can go living the life of a bullshitter in economics.

What, no CFR credentials?

Tue, 07/21/2015 - 14:28 | 6338050 youngman
youngman's picture

She is a nameplate whore.....just padding the resume....

Tue, 07/21/2015 - 14:29 | 6338057 schadenfreude
schadenfreude's picture

Short USD bitchez

Tue, 07/21/2015 - 14:32 | 6338083 Chuck Knoblauch
Chuck Knoblauch's picture

Where is her CFR membership listed?

Tue, 07/21/2015 - 14:34 | 6338088 Comte d'herblay
Comte d'herblay's picture

Looks like she too hasn't worked a day in her life in a real job.  Yet another egghead who is just too connected to fail. But what if anything has she ever added to GDP?

Nothing, that's what, a perfect candidate for the FED who will do the bidding of the Jewish Mafia in New York, Fleet Street and Orchard Road. 

Tue, 07/21/2015 - 14:49 | 6338158 madcows
madcows's picture

Funny, she doesn't look Druish.

Tue, 07/21/2015 - 14:34 | 6338089 orez65
orez65's picture

What's so fu.king hard about what's wrong with the U.S. Economy?

"We spend more than we produce and the Federal Reseve covers it up by counterfeiting US Dollars"

Tue, 07/21/2015 - 15:11 | 6338198 MagicMoney
MagicMoney's picture

The theory kind of reflects NeoKeynesianism. That money printing translates to employment. Also the mainstream theory that depreciating currency is good for exports. It's true, trashing your own currency allows you to cheapen your exports to your importers. Importers get a discount, and they get stuff cheaper. but he US also imports as well, so the reverse happens in that direction. US has little prospect for growth, so Obama's elite pros who decide government policy will use more tricks to try to create growth such as currency depreciation. Currency depreciation is a illusion of economic activity. It's an illusion in that such policy pretends to act as economic comparative advantage with savings, but it's not, because the currency does not gain value with weak currency policy as thoroughly. It's just a trick to create some kind of growth, but the trade off is purchasing power, because bureacrates don't want create policies that give incentive to savings and investing which would allow greater purchasing power, at the same time allow more production and exports. This would mean the removal of loose monetary policy, revamp of fiscal and regulatory laws. Generally laws that encourage savings, and investing, as well as production. Instead doing all that, it's more politically prudent to simply print money, go the short cut way around to achieve exports.

Tue, 07/21/2015 - 14:36 | 6338103 madcows
madcows's picture

Sure.  Like a "Strong Dollar" has anything to do with the problems this country faces.

Does the "Strong Dollar" have anything to do with our 17 (sic) trillion in debt?

Does the "Strong Dollar" have anything to do with our corrupt government?

Does the "Strong Dollar" have anything to do with our deficit spending?

Does the "Strong Dollar" have anything to do with our over regulation of everything?  ever try to build something?  There's about a thousand agencies you need a permit from.

Does the "Strong Dollar" have anything to do with hordes of illegals weighing us down?

Does the "Strong Dollar" have anything to do with shit loads of loafers collecting more than they pay in?

The fucking dollar has nothing to do with our problems.  The problems are wholey due to government malfeasance.  FU DC.

Tue, 07/21/2015 - 14:44 | 6338135 cbaba
cbaba's picture

She is the perfect candidate for this job. 

She has never worked in a private company, zero professional experience, probably thinks Economy is a science. 

Tue, 07/21/2015 - 16:03 | 6338484 lakecity55
lakecity55's picture

I'd be moar confident is she had been a stripper during college or maybe a stint in rehab.

Tue, 07/21/2015 - 14:44 | 6338142 orangegeek
orangegeek's picture

sound like mini-yellen.

 

that fucking annoying soft spoken "everything is fine" narrative - fuck you Dominguez!!

Tue, 07/21/2015 - 14:45 | 6338145 Clowns on Acid
Clowns on Acid's picture

Don't see any papers on "MOney printing" in her resume, but seeing the words, Yale, Harvard, and UCal Beserkeley one knows she is a "Yes man" to the neo Bolsheviks.

Tue, 07/21/2015 - 14:49 | 6338146 Albertarocks
Albertarocks's picture

The USA is about to go through a deflationary cylce.  There's no mystery to this.  A deflationary cycle ALWAYS follows a wildly inflationary cycle.  There is no other option, it is the rule of nature... it's just math.

Obama can hire anybody he wants... as many new eggheads as he wants... and it won't do one iota of good.  Nobody can stop the deflation genie once the cork has popped off that bottle.  Very simple... the US dollar is about to become very, very precious, as everybody who is nearing a debt crisis must find some dollars with which to pay back his loan.  If not... he defaults... goes bankrupt.

The die is cast.  The world has to, AND WILL, go through a hellish deflationary phase in terms of US dollars.  First visible clue of world-wide deflation starting?  The Greece crisis (although that one is in Euros).  And then the stock market crash.  "What stock market crash" you ask?  China for one.  "And in the US?"  Stay tuned.

Tue, 07/21/2015 - 15:48 | 6338428 Son of Loki
Son of Loki's picture

I don't think we have entered the 'wild inflationary cycle' as yet. That's the next feature presentation.

Tue, 07/21/2015 - 18:12 | 6338984 Sonic the porcupine
Sonic the porcupine's picture

The FED will not stand by and watch the markets collapse. No, the FED will print until the dollar is destroyed.

Tue, 07/21/2015 - 14:50 | 6338170 Yen Cross
Yen Cross's picture

  Great, let's hire fucking crony that's probably never actually traded in the F/X markets professionally to come in and try to defy the laws of gravity.

 All she's going to succeed in doing is causing stagflation through devaluation, and it will be compounded by any rate increases. The American public is tapped out, and global macro is slowing down.

 These idiots want dirt cheap commodity prices and inflation. Moronic clowns.

Tue, 07/21/2015 - 15:04 | 6338215 QQQBall
QQQBall's picture

Paid internship b/f joining GS.

Tue, 07/21/2015 - 15:06 | 6338220 withglee
withglee's picture

With a properly managed Medium of Exchange (MOE),

 

  • where money is "a promise to complete a trade"
  • where money is in free supply (traders free to make trading promises)
  • where supply and demand for money is in perfect balance (it's the nature of a trade)
  • where defaults are immediately mitigated with interest collections
  • where inflation is guaranteed to be zero (INFLATION = DEFAULT - INTEREST = zero)
  • where exchange rates between properly managed MOEs never change

this lady is out of work. So what are the chances this lady promotes a properly managed MOE?

Tue, 07/21/2015 - 15:20 | 6338288 autofixer
autofixer's picture

I'd do her. 

Tue, 07/21/2015 - 16:01 | 6338475 lakecity55
lakecity55's picture

Maybe. Let's see her tits.

Tue, 07/21/2015 - 15:22 | 6338293 Raul44
Raul44's picture

LOL.

Tue, 07/21/2015 - 15:26 | 6338319 farmboy
farmboy's picture

Haha Fx expert. Did she ever made a dime in trading?

Tue, 07/21/2015 - 16:00 | 6338473 lakecity55
lakecity55's picture

Why yes, on simulators in college!

Tue, 07/21/2015 - 15:39 | 6338334 falak pema
falak pema's picture

Only one question work asking : Is she as hot as the Fx and also as twisted down under?

If so she is TBTF compatible! 

And thats what cunts (I mean counts). 

What Blythe could not do, as her underwear was stamped JPM, maybe this gal can squeeze thru.

Hot lips has a successor! 

(I wonder if Yellen likes being double guessed about the coming rate hike. That will make the $ stronger and the S&P hit the skids. What will hot lips have to say on that?)

I get the feeling Obammy does not trust Yellen all the way. 

Tue, 07/21/2015 - 15:31 | 6338349 farmboy
farmboy's picture

Wow regarding her academic topics I can be a Ph D too.

Tue, 07/21/2015 - 15:33 | 6338352 all-priced-in
all-priced-in's picture

Does she have any REAL WORLD experience?

 

Like has she ever given a BJ to get a payday loan?

 

 

 

 

Tue, 07/21/2015 - 15:35 | 6338370 jimfcarroll
jimfcarroll's picture

She wont be able to devalue during a debt deflation (like we're in right now). Just ask Japan.

Tue, 07/21/2015 - 15:38 | 6338380 El Hosel
El Hosel's picture

A bigger rigger is in order here folks, can't let a strong dollar spoil the prosperity.

Tue, 07/21/2015 - 15:42 | 6338406 rejected
rejected's picture

More useless Zombies with PhD's.

Tue, 07/21/2015 - 15:46 | 6338419 Jack Daniels Esq
Jack Daniels Esq's picture

Flabbergasted - has Barry run out of dumb niggas to hire - surely not

Tue, 07/21/2015 - 15:59 | 6338468 lakecity55
lakecity55's picture

She is a "white" Hispanic. He got close enough.

Tue, 07/21/2015 - 15:46 | 6338421 samuraitrader
samuraitrader's picture

a new oxymoron - academic forex expert

Tue, 07/21/2015 - 15:55 | 6338457 Charles Offdensen
Charles Offdensen's picture

It doesn't matter who this fagg'e nominates or what policy he implements. All I know is this is going to be the longest, hardest and most brutal 18 months of mine and your lives.

For the record I tried!

Tue, 07/21/2015 - 15:58 | 6338464 lakecity55
lakecity55's picture

I'd be moar confident is she had graduated from Trade School, started helping out her dad, an FX man, and found she had talent and common sense.

Tue, 07/21/2015 - 16:02 | 6338479 Hondo
Hondo's picture

In fact if she believes this In a 2013 working paper, she and a co-author said financial and fiscal developments in Europe, along with "self-inflicted wounds from the political stalemate over the U.S. fiscal situation," helped explain why the U.S. recovery had been so slow..............then we have not removed ourselves from the stupidity..

Tue, 07/21/2015 - 16:31 | 6338582 Grimaldus
Grimaldus's picture

So why is obama not in jail?

 

Grimaldus

 

Tue, 07/21/2015 - 17:08 | 6338747 Cthonic
Cthonic's picture

  “By dint of knowledge, temperament, seriousness—she’ll be a good Federal Reserve governor,” said Alan Blinder, a professor of economics and public affairs at Princeton University and former Fed vice chairman. He said Ms. Dominguez, a friend, is a “top-rank, serious economist.”

In other words, she's 120 lbs of ivy league ballast for the USS Status Quo.

 

Tue, 07/21/2015 - 18:05 | 6338948 Sonic the porcupine
Sonic the porcupine's picture

Rather than say something about how devaluing one's currency does not grow an economy, I'll just say that I get tired of yelling the emperor has no clothes to no avail, so maybe I'll just strip down to my skivvies and strut around with the delusional idiots.

Further, I'd say bullish wheelbarrows but the gov will probably ban cash.

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