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Recent polls give President Obama a comfortable lead ahead of the elections this November. But even if he were to lose, his control of the nation’s central bank may live on for some two decades.UBS’s Art Cashin sent his readers a note from Foreign Affairs, that details the timeline each board member appointed to the Fed by President Obama will sit.
From Cashin’s Comments.
There’s a fascinating article in Foreign Affairs by Sylvester Eijffinger and Edin Mujagic. The premise is set up in the opening paragraph. Here’s the thrust:
Regardless of who wins the 2012 U.S. presidential election, President Barack Obama will end his first term having decisively shaped U.S. monetary policy for at least the next two decades. Thanks to a stroke of lucky timing — the Federal Reserve Board happened to have an unusually high number of vacancies during the president’s first term — Obama will have either appointed or reappointed every single one of the seven members of the Federal Reserve’s Board of Governors, including its chairman, Ben Bernanke, by the end of 2012. With the governors each set to serve a 14-year term, they will ensure Obama’s long-term impact on the U.S. economy.
If you can access it, read the whole thing. There are legacies and then there are legacies.