The President-elect’s team is on toes as it prepares to make crucial decisions regarding the top positions in his upcoming government. Donald Trump has been meeting up with various nominees who are expected to fill the most important and high ranking positions.
President-elect Trump recently met with one of the brains in the financial sector, in his meeting on Monday, Trump met with the former CEO of the bank BB&T and of the libertarian think tank the Cato Institute John Allison.
This comes as the rumors concerning John Allison continue to spread, many have said that he is being considered for the position of the Treasury Secretary.
The President-elect has severally questioned the future and direction that the Federal Reserve Political Independence is taking during his campaign trail, triggering speculations that he might not be satisfied with the current operation of the institution.
This is where John Allison comes in handy; Allison has the same thought concerning the same institution. When John Allison was running the Cato Institute he wrote a paper that insinuated that the Fed should be abolished.
John Allison said that he would get rid of the Federal Reserve due to the fact that it’s behind the volatility nature of the economy. These thoughts were expressed by John Allison in the Cato Journal back in 2014, the journal is a publication of the Institute.
According to John Allison, allowing the market to regulate itself is preferable to the Fed but this has an adverse effect to the stability of the financial system.
Allison pointed out that when the Fed over-regulates the financial sector, distorts interest rates, and changes the money supply it ends up making the rational economic calculation very hard. This results in the markets forming bubbles while the Fed makes the situation worse.
John Allison also said that the government should stop insuring bank deposits with large sums up to $250,000 recommending the US government to implement the former banking system that was backed by a market standard such as gold.