The Latest from the Prospect
 ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌


 

View this email in your browser
<[link removed]>

**JANUARY 27, 2023**

Kuttner on TAP

****

****

****

****

****

****

****

**** Who Will Head the National Economic Council?

Fed governor Lael Brainard's name has been leaked. It's more
important to keep her at the Fed.

While the naming of Jeff Zients as Biden's new chief of staff has
gotten more press attention, another key senior appointment is in the
offing. Brian Deese, chair of the National Economic Council, is leaving.
Press leaks suggest that the front-runner to succeed Deese is Lael
Brainard, vice chair of the Federal Reserve.

This idea, to put it politely, is nuts.

Brainard is the most respected member of the Fed's Board of Governors,
and the most dovish on when to stop the rate hikes. She is also the
toughest of the current board when it comes to bank regulation. Whether
Biden appreciates it or not, he needs her at the Fed, especially if he
wants a strong economic recovery in time for 2024.

So why on earth is Brainard being touted as the leading candidate to
head the NEC?

Evidently, the White House leadership has decided that with Zients
coming on as chief of staff, the next head of the NEC can't be another
white male. (Hold on, isn't the departing NEC director, Deese, a white
male? Yup, but that was then.) It's all the more important that the
next chair of the NEC be progressive, both as a counterweight to the
more centrist Zients and to offset the departure of Tim Wu, who was in
charge of competition policy at the NEC and had a large portfolio.

Reducing the white male dominance of senior government posts is an
overdue goal, and another credit to Joe Biden. But let's not rob Petra
to pay Paula. Brainard is more important at the Fed, where females, not
to mention effective progressives, are also in short supply.

Moving Brainard would leave a vacancy at the Fed at a crucial moment,
when chair Jay Powell and the rest of the governors will either start to
take their foot off the brake-or not. And with a Democratic majority
of just one in the Senate (which includes the flaky Kyrsten Sinema and
the corporate Joe Manchin), confirming a progressive successor to
Brainard, and after too long a vacancy, will be no cakewalk either.

In addition, Brainard's history outside the Fed was in international
finance at the Treasury Department, and even before that her academic
work involved global trade policy and development. The NEC is more of a
domestic-policy position.

Among nonwhite males to head the NEC, how about Bharat Ramamurti, the
brilliant and progressive deputy director of the NEC. Or Celeste Drake,
the respected NEC deputy in charge of labor issues. Or the current chair
of the Council of Economic Advisers, Cecilia Rouse, who is both female
and African American.

Affirmative action is both necessary and tricky. Ticking boxes with
diverse categories of appointees is only the beginning. The right people
have to be in the right positions.

Let's hope the leak of Brainard was just a trial balloon, and the
sound of the air going out goes all the way to President Biden.

~ ROBERT KUTTNER

To receive this newsletter directly in your inbox, click here to
subscribe.  <[link removed]>

Follow Robert Kuttner on Twitter <[link removed]>

[link removed]

The Myth of Jeffrey Zients
<[link removed]>
There is no reason to trust a longtime corporate stooge to serve as
President Biden's chief of staff. BY MAX MORAN

The Silence of the American Jews
<[link removed]>
With all too few exceptions, Jewish organizations and elected officials
haven't said much-if anything-about Israel's new government's
assault on liberal ideals. BY HAROLD MEYERSON

Can China and America Live and Let Live?
<[link removed]>
Détente with the Chinese regime had many downsides. Open conflict might
be much worse. BY BLAISE MALLEY

Human Intelligence
<[link removed]>
The GOP House majority gets down to the nation's business. BY
FRANCESCA FIORENTINI

Altercation: Goodbye and Thanks
<[link removed]>
And Victor Navasky remembered BY ERIC ALTERMAN

 

[link removed]

Click to Share this Newsletter

[link removed]


 

[link removed]


 

[link removed]


 

[link removed]


 

[link removed]

YOUR TAX DEDUCTIBLE DONATION SUPPORTS INDEPENDENT JOURNALISM
<[link removed]>

The American Prospect, Inc.
1225 I Street NW, Suite 600
Washington, DC xxxxxx
United States
Copyright (c) 2023 The American Prospect. All rights reserved.

To opt out of American Prospect membership messaging, click here
<[link removed]>.

To manage your newsletter preferences, click here
<[link removed]>.

To unsubscribe from all American Prospect emails, including newsletters,
click here
<[link removed]>.