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 ...
Story link?
Trump cannot fire her for political reasons and he has no grounds to impeach her. And Yellen isn't resigning.
My original point was that ‘for cause’ would *not* include policy differences, so the Fed Chair does not serve at anyone’s ‘pleasure’. Financial markets and the Fed itself pretty much rule themselves.
“Would she quit before she’s fired?”
Would she also move to Canada?
We’ll see.
Good. But why wait?
Thx for posting
The figures support your thesis. To be rid of the Fed is to dream improbable dreams now.
That Yellin will quit if Trump wins is also improbable unless she is really fast with her resignation. I suspect it would be a race with Trump to see who can strike first. Him “encouraging” her to resign or her just resigning.
Just have her arrested for treason.
I suspect that Yellen will be there until her term runs out in 2018.
Better outcome:
Disband the Federal Reserve.
I don’t know who has the power to do that, but it needs to be done.
No, don’t replace her; abolish the Fed.
huh, didn't get included. here it is.
Congress giveth. Congress can taketh away.
Congress made the FR because the constitution says they got to "coin money and regulate the value". Before they can stop the FR, they have to start something else. You got anything in mind for them to start up?
Correct. It is an appointed position but
“The day Obama goes off, and he leaves, and goes out to the golf course for the rest of his life to play golf,........"
I believe Trump is incorrect on above quote. Obama's handlers have him slated for the UN and will move him into the head of that org to further attempt to destroy America. We need to stop that from happening.
As with Bernanke, Yellen has done a good job given the fiscal hand she has been dealt. There was no need to raise interest rates last December but she signaled they were going to do it to show that they would when it was needed. Still no need now but they will do the same thing in December. The Fed did an amazing job during the liquidity crisis coming out of 2008. Unwinding it will be difficult but the global economy is going to let them do it gradually and they are taking that opportunity.
What should they do differently than what Yellen and the FOMC are doing now?
Maybe start a new department— maybe call it U.S. Department of the Treasury
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