Trump’s Political Agenda Could Threaten Independence of Federal Reserve, Says Former Chair
Economist Janet Yellen spoke at a symposium held at Tel Aviv University, from which she received an honorary doctorate Thursday
Uri Pasovsky | 10:56 19.05.2019
The political agenda spearheaded by U.S. President Donald Trump could threaten the independence of the Federal Reserve, according to former chair Janet Yellen. Speaking Friday at a symposium held as part of the board of governors meeting at Tel Aviv University, from which she had received an honorary doctorate the previous day, the American economist said the president’s attacks against the Fed could negatively impact public trust in the bank.
For daily updates, subscribe to our newsletter by clicking here.The American economy has completed its recovery from the 2008 financial crisis and reached an historically low unemployment rate, Yellen said, leading the Fed to decide to keep its interest target range at 2.25%-2.5%. One of the major risks to the economy, however, she said, is trade-related tensions between the U.S. and China, which could slow growth both globally and in the U.S. "So it's appropriate that the direction and timing of future interest rate moves depend on incoming data that bear on the outlook," she said.