WASHINGTON (AP) — Janet Yellen said she was disappointed that President Donald Trump didn’t offer her a second term as Federal Reserve chair, but supports her central bank successor, Jerome Powell, who takes over on Monday.
Powell, a Fed board member since 2012, is “thoughtful, balanced, dedicated to public service. I’ve found him to be a very thoughtful policymaker,” Yellen said in an interview with CBS’ “Sunday Morning.”
She also said the stock market — the Dow Jones industrial average closed at 25,520 Friday after a 665-point drop — was “high,” and that the financial system was in stronger shape to handle a sharp sell-off than it was during the 2008 financial crisis. She cited changes put in place since that time; Trump has been critical of that effort.
“The financial system is much better capitalized. The banking system is more resilient,” Yellen said. “Our overall judgment is that, if there were to be a decline in asset valuations, it would not damage unduly the core of our financial system.”
Yellen, appointed by President Barack Obama, was the first woman to lead the Fed. Her four-year term ended Friday. She is joining the Brookings Institution think tank.
Yellen noted that it has been common for Fed chairs to receive a second term even when they were first nominated by a president of the other party.
“I made clear that I would be willing to serve another term and so yes, I do feel a sense of disappointment,” she said.
Trump was highly critical of Yellen during the 2016 campaign, but took to praising her after becoming president. Nonetheless, he decided against reappointing the Democrat in favor of nominating Republican Powell.
Before becoming Fed chair in 2014, Yellen had served as the central bank’s vice chair and was president of the Fed’s San Francisco regional bank.
“I’ve been in high level positions in the Federal Reserve for many years, where I think I’ve had a seat at the table to make the arguments that I thought needed to be made and to advocate for good policy,” Yellen said.
Yellen was asked whether she believed the economy was under threat because stocks had risen too high, creating an asset bubble that could burst, with disastrous results.
“I don’t want to say too high. But I do want to say high,” Yellen said, adding that it was “a source of some concern that asset valuations are so high.”
Yellen is going to a think tank. If only Donnie could think, but he can’t.
Don’t be disappointed. RUN. YOU ESCAPED.
it was impossible for her to have gotten a second term via Trump - She was appointed by Obama & Trump has gone all in on doing everything contrary to Obama’s legacy - - - She is a woman who is orders of magnitude far smarter than Trump and would not kiss his butt… so when ever the would meet - no matter how professional and businesslike she would be toward Trump, all he would have monopolizing is brain was how monumentally inferior he was to this - this - this - WOMAN …
Yes, she was perhaps the most qualified person ever to lead the Fed.
She will be remembered for her capable stewardship through turbulent times, where tough decisions on interest rates and the unwinding of the novel QE program, among other issues, were made,
Too bad her gender, and the fact that she was appointed by President Obama, was Trump’s overriding consideration.
It should be noted that on her last day she took strong action against Wells Fargo for their sleazy practices, which included creating bogus accounts without the consent of its customers.
Her replacement, who is said to be somewhat of a follower of hers in some aspects, will hopefully be similarly forceful and independent, as Dodd-Frank legislation authorizes the Fed to play a strong role in banking regulation.
And you won’t have to manage the inevitable train wreck when the Trump/Ryan overstimulated bubble economy goes pop.