Ex-Fed Official Poole to Advise Mutual-Fund Company

William Poole, the former President of the Federal Reserve Bank of St. Louis, will work as a senior economic advisor the Merk Investments, the mutual-fund company said.

Poole

Poole was an outspoken inflation hawk, who dissented against the Fed’s emergency 0.75 percentage point rate cut on Jan. 22, arguing the committee could have waited nine days to move at its regularly scheduled meeting.

He has even criticized policymaking actions that he originally supported. Earlier this year, he said the Fed left interest rates at 1% too long. “With the benefit of hindsight — and the importance of the word ‘hindsight’ should be emphasized — it is not hard to argue that the [Fed] was too slow to raise the federal funds target after taking the target down to 1% in 2003,” he said in February. Mr. Poole was a nonvoting member in 2003 when the target was lowered to 1% from 1.25% (it had been 6.5% in early 2001). He was a voting member in 2004 when it was left at 1% until June, when the Fed began to raise it in a series of quarter-percentage point moves.

“My reading of economic history is that we generally live to regret a monetary policy focused exclusively on the number one economic concern of the day,” Poole said in separate remarks in February this year.

Merk highlighted Poole’s inflation-fighting credentials in its announcement. “Given Bill’s well known position on price stability he is well positioned to provide a set of insights and advice to our growing firm with respect to what the Fed is likely to say and what they are likely to do.”

“We will have regular calls with Dr. Poole and look forward to the time in the near future when we will provide a public forum for him to interact with market players and the financial media,” said Chief Economist Joseph Brusuelas, noting that Poole also will meet with clients.

“My engagement at Merk Investments will allow me to stay in close touch with the markets at a time when monetary policy may be more relevant than ever,” Poole said.

After leaving the St. Louis Fed, Poole took a position as senior fellow at the Cato Institute and plans to join the faculty of the University of Delaware as distinguished scholar in residence in the autumn. –Phil Izzo