Here's another punch in the gut to President Trump supporters who thought he was going to all but shutdown the Federal Reserve.
During the presidential campaign, he said Yellen should be “ashamed” of herself because of what he said was her political bias. But now he is considering reappointing her to another term as Fed chair.
The Wall Street Journal reports that during an interview:
He left open the possibility of renominating Federal Reserve Chairwoman Janet Yellen once her tenure is up next year, a shift from his position during the campaign that he would “most likely” not appoint her to another term.
Here's more from Reuters on the interview:
President Donald Trump signaled on Wednesday he could be moving closer to the mainstream on monetary policy, saying he had not ruled out reappointment of Janet Yellen to a new four-year term as Fed chair as he considers his choices for the central bank.
In an interview with the Wall Street Journal, Trump was asked if Yellen was "toast" when her term expires in February, a question that reflected a widespread assumption that he would put his own stamp on the monetary authority rather than rely on former President Barack Obama's choice to run the Fed.
Trump replied with his most explicit comments about the Fed since taking office, saying that Yellen was "not toast," that he had "respect" for her, and that he would prefer the Fed to keep interests rates low.
In some quarters, supporters thought that Trump was anti-Fed but that was simply a misreading of Trump's true position.
I warned about Trump's position on the Fed last May when he was in campaign mode:
What is emerging as Trump begins to outline his policies is that he is not in favor of smaller government. He is in favor of smaller government when it helps the banksters.
When it is a government agency that benefits the banksters, like the Fed, well then, he's "not one that says we should get rid of the Federal Reserve" because "the Federal Reserve has an important function."Bottom line: Whether he reappoints Yellen or not, it will be a crony Wall Street approved appointment.