Why Yellen may quit if Trump wins

Market Watch ^ | Sept 27, 2016 12:33 p.m. ET | Steve Goldstein

[expat_panama]

Even with two years remaining in her term, Federal Reserve Chairwoman Janet Yellen may quit if Donald Trump is elected president, an economist argued on Tuesday.

Paul Ashworth, chief U.S. economist at Capital Economics, said in a note to clients that Trump doubled down on criticism of the Fed during his debate with Hillary Clinton.

Trump said the U.S. economy is in a “big, fat, ugly bubble” and specifically called out Yellen.

“And we have a Fed that’s doing political things. This Janet Yellen of the Fed,” he said. “The day Obama goes off, and he leaves, and goes out to the golf course for the rest of his life to play golf, when they raise interest rates, you’re going to see some very bad things happen, because the Fed is not doing their job...

...he would continue with his public criticisms of the Fed in the run-up to that meeting, arguing that a rate hike would be a political attempt to damage the economy ahead of his presidency. The main reason for believing that Yellen would resign almost immediately is that falling on her sword would take some of the political heat off the rest of the FOMC...

...Trump would in turn be more likely to nominate someone who would bow to political pressure — and leave interest rates lower for even longer than the Yellen-led Fed would have done.

[DoodleDawg]

She shouldn’t let the door hit her on the way out.

You realize that nowhere in this article is there anything from Yellen that she's planning on resigning, right? That it's only uninformed speculation on the part of Ashworth alone?

[canuck_conservative]

Then why are they in such a panic every time Ron Paul brings up the subject?

[DoodleDawg]

It’s tricky. The Fed Chairman serves at the pleasure of the President. He can pressure congress to have her removed.

The Fed chair is appointed by the president and approved by Congress, but the President and Congress can no more fire her than they can fire a federal court judge.

[DoodleDawg]

Then why are they in such a panic every time Ron Paul brings up the subject?

I'm not aware of anyone panicking. One can only speculate that Ron Paul doesn't know what he's talking about...and have a pretty good chance of being right.

[jjotto]

That’s not the definition of ‘pleasure of the president’.

The Chair comes from the already serving Governors of the Fed.

[expat_panama]

 

A good morning to all!  Stock indexes bounced back up a bit yesterday back up closer to where they'd been, and while the trading was higher than the day before it was still below average.  Gold and silver are now back up to $1,325.65 and $19.18, even though metals futures are off -0.01% (here's the metals breakdown).  Stock index futures are a bit dark -0.23%.

We get these today:

7:00 AM MBA Mortgage Index
8:30 AM Durable Orders
8:30 AM Durable Orders, Ex-Transportation
10:30 AM Crude Inventories

--and this stuff now:

Uh, Hillary, Your Hubby Caused the 2008 Recession
Trump's Taxes? Audit the Clinton Foundation!
Free Trade vs. Balanced Trade
Brexit: A Matter of Principle Anthony Bright-Paul "It's the economy, stupid" is not all that applies here. More
How can you do a presidential debate without a question about ObamaCare? - 9/28/16 It is incredible that there were no questions about ObamaCare
Nailing the networks - 9/28/16 How to skewer the mainstream media in one devastating cartoon.

[expat_panama]

Would she quit before she’s fired?

We need a lawyer here.  It's possible that the only way to 'fire' her is to have her impeached, but I may be wrong...

[expat_panama]

Trump can put in someone useful

Yeah.  imho she's a non-issue.

[knarf]

Every comment here and in just about every Trump thread, is the identity of the enemy's fear .... that President Trump IS GOING TO get rid of all their key subversives and they will lose a hundred years' worth of espionage and destruction against the United States of America.

THAT is what they fear the most.

My wife asked about Trump's security last night while watching his Florida rally and I said that he definitely has had personal body guards most of his life and that now, as Presidential nominee, he has ALSO the SS.

I told her that I THINK Trump has co-ordinated with the SS the two agencies and they are both willing participants in protecting the most important man of the 21st century.

If I'm correct in that assumption, it is not difficult to imagine the shake-up Trump is capable of accomplishing and indeed has either stated or hinted at.

[silverleaf]

She should have quit after she had a mini stroke during a live speech months ago

[wastoute]

She will probably be headed somewhere safe from extradition.

[jjotto]

A little tricky. Fed Chair CAN actually be fired by a President “for cause”. It’s unclear what that means, but traditionally it has not meant policy differences.

[mindburglar]

They can absolutely have her removed. It’s an appointed position. Whether the process is impeachment or something else, there is a process.

[mindburglar]

Most likely it’s the President can fire her and the congress needs to approve it.

[billyboy15]

Fed Res is not necessary. The markets do a perfectly fine job of managing interest rates.

[DoodleDawg]

They can absolutely have her removed. It’s an appointed position. Whether the process is impeachment or something else, there is a process.

The only process would be impeachment and you have to have grounds to impeach. What are they?

[DoodleDawg]

Fed Res is not necessary. The markets do a perfectly fine job of managing interest rates.

The markets don't manage interest rates. They set their rates based on what the Fed does.

[DoodleDawg]

Fed Chair CAN actually be fired by a President “for cause”.

No they can't.

[48th SPS Crusader]

If Trump is elected I doubt she has to worry about quitting. Fired yes, quitting no.......

[jjotto]

http://www.federalreserve.gov/aboutthefed/section%2010.htm

...each member shall hold office for a term of fourteen years from the expiration of the term of his predecessor, unless sooner removed for cause by the President. Of the persons thus appointed, 1 shall be designated by the President, by and with the advice and consent of the Senate, to serve as Chairman of the Board for a term of 4 years...