Is Trump Smart Enough To Reappoint Janet Yellen?
Donald Trump  would be wise to reappoint Federal Reserve Chair Janet Yellen  whose term expires in February. Keeping Yellen would plainly serve Trumpâs political interests. Yellenâs stewardship of the Fed has kept the recovery on track  stimulated inflation-free economic growth  and even permitted a little wage growth despite the wreckage of unions and the loss of labor power in the gig economy. The result is also record stock market levels.
Yellen is one of Obamaâs best appointees  and perhaps the best Fed chair ever. Thanks to Yellen   Trump  enjoys bragging rights for an economic boom not of  his  own making. So whatâs not to like?
For one thing  thereâs the inescapable  galling fact that  Trump âs nemesis  Barack Obama  appointed her. For another  Yellen is a liberal Democrat. And third  Yellen found the economic sweet spot by combining strong financial regulation with low interest rates. Tough regulation is not exactly Trumpâs thing.
So what will  Trump  do? The White House has signaled that  he  will appoint a Fed chair by early November. The smart move would be to rename Yellen.
 Trump  said  himself  in a Sunday interview broadcast on Fox that there were three names on  his  short listâYellen and two Republicans. One is Stanford economist John Taylor  the other is a current Fed governor  Jerome Powell  known as âJay.â Two other names that have been mentioned by White House sources are Gary Cohn  who heads the White House economic council  and former Fed governor Kevin Warsh.
So if  Trump  desires to shoot  himself  and the economy in the foot  either Taylor or Warsh would do the job nicely. Presumably  even with  Trumpâs  short attention span and erratic impulses  Gary Cohn and Treasury Secretary Steve Mnuchin will point that out.
Investors are enjoying the steep run-up in stock prices  and waiting for a signal that a âcorrectionâ is about to begin  in which case large numbers of stockholders will cash in their winnings  causing the sharp fall in stock prices that they fear. The day that  Trump  appoints Taylor or Warsh  look for an abrupt stock market lurch  followed by slower growth triggered by higher interest rates.
The wise guys say that Cohn is out of  the runningâTrump  needs him at the White House. Supposedly  the favorite is Powell.
Powell personifies the swamp that  Trump  pledged to clean out. Basically  heâs Yellen on monetary policy and Greenspan on non-regulation  risking another bubble and collapse. In the  Trump  era  heâs as good as it gets.
It sure looks to me as if Yellen was included on the short list as a feint. This is standard  Trump  practice. Given  his  animus towards anything or anyone associated with Obama  it would be astonishing if he reappointed her.
 [TGT] would be wise to reappoint Federal Reserve Chair Janet Yellen  whose term expires in February. Keeping Yellen would plainly serve Trumpâs political interests. Yellenâs stewardship of the Fed has kept the recovery on track  stimulated inflation-free economic growth  and even permitted a little wage growth despite the wreckage of unions and the loss of labor power in the gig economy. The result is also record stock market levels.
Yellen is one of Obamaâs best appointees  and perhaps the best Fed chair ever. Thanks to  [TGT] enjoys bragging rights for an economic boom not of   [TGT]   own making. So whatâs not to like?
For one thing  thereâs the inescapable  galling fact that  Trump âs nemesis  Barack Obama  appointed her. For another  Yellen is a liberal Democrat. And third  Yellen found the economic sweet spot by combining strong financial regulation with low interest rates. Tough regulation is not exactly Trumpâs thing.
So what will   [TGT] do? The White House has signaled that  he  will appoint a Fed chair by early November. The smart move would be to rename Yellen.
  [TGT] said   [TGT]   in a Sunday interview broadcast on Fox that there were three names on   [TGT]   short listâYellen and two Republicans. One is Stanford economist John Taylor  the other is a current Fed governor  Jerome Powell  known as âJay.â Two other names that have been mentioned by White House sources are Gary Cohn  who heads the White House economic council  and former Fed governor Kevin Warsh.
So if   [TGT]   desires to shoot   [TGT]   and the economy in the foot  either Taylor or Warsh would do the job nicely. Presumably  even with  Trumpâs  short attention span and erratic impulses  Gary Cohn and Treasury Secretary Steve Mnuchin will point that out.
Investors are enjoying the steep run-up in stock prices  and waiting for a signal that a âcorrectionâ is about to begin  in which case large numbers of stockholders will cash in their winnings  causing the sharp fall in stock prices that they fear. The day that  Trump  appoints Taylor or Warsh  look for an abrupt stock market lurch  followed by slower growth triggered by higher interest rates.
The wise guys say that Cohn is out of  the runningâTrump  needs him at the White House. Supposedly  the favorite is Powell.
Powell personifies the swamp that  Trump  pledged to clean out. Basically  heâs Yellen on monetary policy and Greenspan on non-regulation  risking another bubble and collapse. In the  Trump  era  heâs as good as it gets.
It sure looks to me as if Yellen was included on the short list as a feint. This is standard  Trump  practice. Given  his  animus towards anything or anyone associated with Obama  it would be astonishing if he reappointed her.