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. The Fed is being more political than Secretary Clinton.’
Ashworth noted that, after the last meeting, Yellen fought back against earlier charges by Trump that the central bank was acting in a politically motivated manner.
This post was published at David Stockmans Contra Corner By Steve Goldstein via Marketwatch ‘ September 30, 2016.