First out the door has been Charlotte Hogg who at least grasped the problem of “do as I say, not as I do”. Unsurprisingly this seems to have evaded the mental capacity of Carney, our governor at the Bank of England who rejected her first offer to resign.
But Carney will shortly have his own career to worry about. His opposite number over in the US, Janet Yellen, is preparing to embark on a series of interest rate rises starting with one this week.
Writing in the FT on Tuesday the well respected Mohamed El-Erian made the following observation: “Look for this week’s Federal Open Market Committee meeting to be remembered as constituting a serious attempt-the most serious so far- by the Fed to leave behind the ‘lower for longer’ paradigm that has been a key part of its unconventional monetary policy.
“Success, however, is not something that the central bank can deliver on its own. Its wellbeing-and more importantly, that of the economy and markets-requires that politicians in the US, Europe, Japan and China also step up to their economic governance responsibilities.”
Here Carny has a problem all of his own making as his idiotic interest rate cut, made thanks to his misreading of Brexit, has him facing entirely the wrong way. Unfortunately the immediate consequence of his own ineptitude is to have turned Sterling into a smouldering ruin. Has he the guts now to follow the path so clearly laid out by El-Erian? If he fails to respond by the end of the month then we can only hope Theresa May invites the hapless man to tea at Downing Street to consider his position.
Which brings me to Hammond. Now that the prime minister has wisely insisted he ditches the self-employed NI increase ,she should follow through by showing him the door. As I said in last week’s City Grump we cannot have a laughing stock of a chancellor when it comes to squaring up to Article 50.
The most effective way now she can show, to one and all, she means business is to demonstrate she will not tolerate slipshod policy making by our financial establishment. That means saying goodbye to Hammond and Carney. I am sure she knows this has to be done.
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