President Trump told Janet Yellen he thinks she’s a low interest rate person like himself according to a CNBC report (link above). Yellen has been raising current interest rates and so I’m thinking the President is less likely to keep her on-board when her term expires in February 2018.
Citing a Wall Street Journal article, President Trump told Janet Yellen back in January that she was doing a good job, according to people familiar with the exchange. However, the President also told Yellen that he thinks she’s a low interest rate person like himself.
Deviate From Low Current Interest Rates Else You’re Fired
I’m thinking that President Trump asked his legal advisor if he has the power to flat out order Yellen to keep interest rates low. I know I’m reading tea-leaves regarding current interest rates but it’s important we get the conversation going as the Fed is the single most important factor in the direction of the stock market.
President Trump was probably told that he can’t directly order the democrat Yellen to keep rates low but that he could make it clear to her that he favors lower rates. I think this was a clever way of communicating to Yellen what he wants her to do if he’s going to keep her on after February 2018.
Yellen has been raising current interest rates and slowing down the economy. If the US economy keeps deteriorating in the second half of 2017, you can bet that the President fires her when her term expires in February 2018. Again, I’m reading tea-leaves here so take this speculation with a grain of salt.