Donald Trump Would Sack Fed Chairwoman Janet Yellen
$DIA, $SPY, $QQQ, $VXX
Donald Trump likes low interest rates, but as President he would look to replace Federal Reserve Chairwomwn Janet Yellen.
“I think she’s done a serviceable job,” Mr. Trump told Fortune Magazine in an interview that will be published this week. “I don’t want to comment on reappointment, but I would be more inclined to put other people in.” Read, “I would sack her.”
US President Barack Hussein Obama appointed Ms. Yellen to lead the Fed in Y 2013, and she succeeded prior Chairman Ben S. Bernanke the following year. Trained as an economist, Ms. Yellen also was on President Bill Clinton’s Council of Economic Advisers and led the Federal Reserve Bank of San Francisco from Y’s 2004 to 2010.
Donald Trump did not tell the Fortune whom he wants to lead the Fed. In the past, he has supported efforts to audit the central bank in an effort to make its decision-making more transparent and accountable to America’s voters.
Ms. Yellen and Dr. Bernanke have pushed back on the idea of an audit, arguing that the Fed needs to be protected from Congressional pressure in its decisions on setting monetary policy. Fed critics say the Fed has too much power and has been instrumental in creating massive asset bubbles that eventually collapse and bring on painful recessions.
Earlier this year, Mr. Trump predicted “a very massive recession” would happen after a bubble in the stock market collapsed.
“The best thing we have going for us is that interest rates are so low,” Mr. Trump told Fortune. “People think the Fed should be raising interest rates. If rates are 3 or 4% or whatever, you start adding that kind of number to an already reasonably crippled economy in terms of what we produce, that number is a very scary number.”
Mr. Trump says he would like to take advantage of lower interest rates in order to refinance the debt and boost spending on the military and infrastructure, according to Fortune.
“The problem with low interest rates is that it’s unfair that people who’ve saved every penny, paid off mortgages, and everything they were supposed to do and they were going to retire with their beautiful nest egg and now they’re getting 1/8th of 1%,” says Trump. “I think that’s unfair to those people.”
Donald Trump hasn’t made any formal announcements of his Cabinet picks, but suggested he would appoint financier Carl Icahn to lead the US Treasury. Mr. Icahn said he would decline the job offer.
Wednesday, US major stock market indexes finished at: DJIA +42.67 at 18096.27, NAS Comp +7.80 at 4948.13, S&P 500 +1.60 at 2102.40
Volume: Trade was above average with about 960-M/shares exchanged on the NYSE
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