By Itunuoluwa Adebo
It’s not Hilary Clinton
While he was running for president, Donald Trump had some not entirely kind words for Federal Reserve Chair Janet Yellen.
Yellen, Trump alleged “should be ashamed of herself” for conspiring with Barack Obama to keep interest rates low and to create a “false stock market,” surprisingly, changed his view entirely.
Now, there’s no reason at all to raise interest rates! What Trump was pestering Janet Yellen to do during his campaign he doesn’t want at all anymore, which is unfortunate for him because Yellen is widely expected to hike interest rates by one-quarter point next Wednesday.
Trump and the Fed chair have a largely different view of how the central bank should proceed not only because Yellen has spent her entire adult life studying this stuff, while Trump spent his walking in on beauty pageant contestants while they were changing, but because they have wildly differing views on the health of the economy.
Yellen and her colleagues see the U.S. economy as operating near its peak potential with unemployment as low as it can go without sparking inflation and the stock market flirting with irrational exuberance.” Donald Trump, on the other hand, looks out of his Oval Office windows and sees a hellscape rusted out factories and crippling unemployment at rates as high as 42%
The fact is, the success of Trump’s entire presidency is predicated on not just continued growth, but the promise of massive, unrealistic growth across the board—rising markets, G.D.P., wages, and so on.
.If Yellen puts a lid on the market rally and there’s a recession in Trump’s first term, he’ll be forced to choose between austerity, giving up on much of his legislative agenda, or exploding the national debt, which he’s hilariously promised to eliminate “over a period of eight years.” The last time the U.S. was debt free was 1835.
We can’t wait to see what Trump would tweet about this.