Carlos Barria | Reuters
Federal Reserve Chair Janet Yellen testifies on the U.S. financial outlook, earlier than the Congressional Joint Financial Committee on Capitol Hill, in Washington, D.C., November 29, 2017.
Former Federal Reserve Chair Janet Yellen balked at President Donald Trump’s rising assaults on the Fed and expressed confidence in Jay Powell, her successor, in keeping with The Wall Road Journal on Friday.
“The Fed is actually not loopy when it comes to what it is doing,” Yellen reportedly mentioned, talking on the World Information Discussion board in Seoul, South Korea.
“Eradicating financial coverage lodging is a totally smart technique. It has been nicely communicated,” Yellen added. Yellen led the Fed for 4 years.
Trump continued his assault on the Fed this week, saying Powell is making a mistake by being too stringent with financial coverage. He blamed the Fed for inflicting an enormous drop in shares this week that took the Dow Jones Industrial Common down practically 1400 factors on Wednesday and Thursday.
“It is a correction that I feel is attributable to the Fed and rates of interest,” Trump mentioned from the Oval Workplace on Thursday. “The greenback may be very robust, very highly effective – and it causes problem doing enterprise.”
Yellen additionally mentioned she had confidence in Powell.
The Fed has hiked its benchmark rates of interest 3 times this yr, with one other fee hike anticipated earlier than the tip of 2018 and three extra probably in 2019. Regardless of Trump’s open criticism, Yellen believes the Fed will proceed with its financial technique
Learn the total story in The Wall Road Journal right here.