because we need a thread with that title.
Other things that keep Yellen up at night include Trump's apparent lack of understanding about the Federal Reserve being an independent organization, and how crucial it is for the economy that Americans have confidence in the central bank. (Since appointing Jerome Powell, the president has blamed the Fed for market sell-offs; complained that he should be given "help" in the form of low interest rates; told reporters "the Fed is going loco,"; insisted his "gut" knows more about economics than Powell's brain; and declared, "The only problem our economy has is the Fed. . . . The Fed is like a powerful golfer who can't score because he has no touchhe can't putt!"). "President Trump's comments about Chair Powell and about the Fed . . . concern me," Yellen told Ryssdal, "because if that becomes concerted, I think it does have the impact, especially if conditions in the U.S. for any reason were to deteriorate, it could undermine confidence in the Fed. And I think that that would be a bad thing."Quote:
Yellen:: Well, I doubt that he would even be able to say that the Fed's goals are maximum employment and price stability, which is the goals that Congress have assigned to the Fed. He's made comments about the Fed having an exchange-rate objective in order to support his trade plans, or possibly targeting the U.S. balance of trade. And, you know, I think comments like that shows a lack of understanding of the impact of the Fed on the economy, and appropriate policy goals. . . . I think [his lack of understanding about the effect of his trade tariffs] is . . . creating a lot of uncertainty for businesses, and I think my own view is that those shifts are likely to be adverse for the U.S. economy. . . . And when I continually hear focus by the president and some of his advisers on remedying bilateral trade deficits with other trade partners, I think almost any economist would tell you that there's no real meaning to bilateral trade deficits, and it's not an appropriate objective of policy.