According to former bank chief Morgan Stanley, Federal Reserve Chairman (Fed), Paul would want to make a mistake if he wants former President Greenspan to be a teacher.
Bauer has been criticized on several occasions, and even President Trump is also dissatisfied with him. He is concerned about the fact that the increase in interest rates several times next year will cause US economy contracts.
In the 1990s, Fed, Greenspan's then president, adopted a policy of waiting and keeping to keep the interest rates low and waiting and see if inflation would be achieved despite economic growth. In August this year, at the annual FED meeting, Bauer praised Greenspan's inactivity and was a good approach to risk management.
However, Stephen Roach, former president of Morgan Stanley Asia, told CNBC on Friday: "Grinsban did not move, supporting the market, but also brought a serious bubble and crisis."
He also said that Bauer is different from Greenspan, and not bad.
On Wednesday, Bauer said the Federal Reserve rate is currently only slightly below the projected neutral level. The conversation supported the stock market at a steep rise.
Interpreting the futures market is that if you only raise interest once a year, you can allow the US economy to enter a neutral zone, ie it will not stimulate or suppress the level of inflation.
Roach said that changing President Tony's tone is not that Bauer is flying to the market, nor becomes more like Greenspan, but looks for truth from the facts and immediately estimates the risk of inflation.
He also expects that if the trade war is slowing economic growth in the United States or the world, it is expected that Feda's raise of interest rates will slow down considerably.
Fed's Fed's disclosure records showed that the Fed may increase interest rates again in December.