Posted on 09/28/2016 3:08:02 AM PDT by 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.
(Excerpt) Read more at marketwatch.com ...
Trump can't fire her.
Wrong. Interest rates are determined by the supply and demand for capital. Money is nothing more than a commodity.
It is true the Fed can proclaim an increase or decrease in what banks pay for capital their moves are always done after seeing the markets reaction to various economic activity here and around the world.
Which means she can be impeached.
Bullshit. Where are you hearing “large numbers of Trump supporters” won’t vote for GOP down ticket?? Lemme guess - some bs anecdotal story??
They brag regularly on FR. You apparently don’t pay much attention.
As far as I know, every federal official can be impeached. The FRB legislation also specifically mentions removal by the President “for cause”, which seems unusual to me at first glance.
I pay attention to data which shows uplifts to candidates who vocally support Trump. Not anecdotes from FR. Lemme guess. One of them hurt your feelings thus your over generalization.
The Fed Chairman may be fired by the President “for cause”. What constitutes cause is likely to be viewed by the courts as a “political question” in which they will not interfere. Or she would just resign rather than wage a long court battle.
Perhaps you could link the data.
Sure. Right after you do.
“Except large numbers of Trump supporters proudly proclaim they they will not vote for down-ticket Republicans, so the GOP will likely be weaker in Congress.”
This is pure bovine droppings. There is NO EVIDENCE to support such a claim. GOP down ballot will do quite well on Nov 8th when Trump is elected President.
Vote Trump 2016
Yelling, please quit!!! You suck, Janet!!
So this is shaping up to be a somewhat traditional election after all?
The GOP delegates, despite warnings and rantings, fell in line to support the primary pick after all, and gradually former rivals and other GOP candidates have fallen into line, and the feeling is that disgruntled conservatives who scorned the GOP Establishment will fall into line and vote for down-ticket Republicans after all. May God grant!
Don’t let the screen door hit ya in the ass, Janet!
CC
Trump needs to “clean sheet” most departments and agencies. The corruption runs so deep it would be impossible to expunge the slime with only a new person at the top.
The Fed chair is not an executive branch position so the president cannot fire Yellen at will. In a 1935 Supreme Court decision, Humphrey's Executor v. United States (295 U.S. 602), the court ruled that an officer who is not in an executive branch position may be removed only with procedures consistent with statutory conditions enacted by Congress. They cannot be removed solely for political reasons. So if Yellen can indeed be removed "for cause" then Congress needs to identify what that "cause" is and Yellen has to violate it. Did she?
But the floor is set by the Fed rates. If the Fed raises rates then banks do. Fed lowers rates then banks do
Correct. He can fire her for being a political operative.
Nope. He can fire her for cause and that cause is that she is a political operative or he can force her to resign. Otherwise she will be impeached.
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