From Wolf Street:
Lael Brainard, former Under Secretary of the Treasury for International Affairs in the Obama administration and elevated further by President Obama to the Federal Reserve Board of Governors (FRB), and thus a voting member of the Federal Open Market Committee (FOMC), where monetary policy is set, on Monday saved the global markets with a single speech.
Huge relief reverberated around the stock market that the Fed dove remained a dove, unlike another Fed dove, Boston Fed governor Eric Rosengren, who’d scared the bejesus out of the markets on Friday, when he mentioned two of the risks of “waiting too long,” including asset bubbles.
While totally blind to asset bubbles, Brainard, can see, however, the awesome job of Secretary of the Treasury that the rumor mill is already offering her in the “Clinton administration.” So she’s doing her darndest to impress Wall-Street darling Hillary. And sending actual money is one way.
It is perfectly legal for a Fed governor, or any other American, to give a maximum of $2,700 per election to a Federal candidate or their campaign committee. So no laws were broken. But in April, Bloomberg reported that Brainard had made a fourth contribution to the Clinton campaign, this time $1,950, which brought the total she’d contributed to the maximum allowed of $2,700.
But $2,700 isn’t nearly enough to elevate her to potential candidate for Secretary of the Treasury. Some extra credit is required – such as propping up the stock market with verbiage of free money forever.
Brainard was the last Fed head to do what she could to add to Fed flip-flopping before the Fed enters into the quiet period leading up to its policy meeting on September 20-21, when the fate of the world will be decided, it seems: whether to raise the fed funds rate by almost …