Trump indicates he's open to renominating Janet Yellen at Fed, WSJ reports

Cheryl Sanders
April 17, 2017

Though Trump constantly criticized Yellen on the campaign trail, he said he met with her in the Oval Office and hasn't decided yet on replacing her when her term expires.

Trump did get good news about the country's credit rating.

The dollar index fell steeply on Thursday morning after U.S. President Donald Trump said that he prefers the Federal Reserve keeps interest rates low because the dollar is too strong.

Trump already has three open slots to fill on the Federal Reserve's Board of Governors, and Vice Chair Stanley Fischer's term will expire in June 2018. The Fed has gradually raised rates over the past two years as the economy continues to recover from the 2008 recession.

In a slow return to more normal monetary policy, Yellen has stopped the purchase of additional financial securities by the Fed and in December 2015 began raising short term interest rates for the first time in 10 years.

"If she continues to do well, he'd be nuts to ditch her for an unknown quantity", said University of California, Berkeley, economics professor Andrew Rose, a long-time colleague and co-author with Yellen of an oft-cited study of labour markets.

There is precedent for Trump to stick with a former president's Fed chair appointment.

Trump just reversed his position on North Atlantic Treaty Organisation. This decrease followed a 0.55 percent slide on Wednesday in the wake of Trump's comments.

Some key Republicans want the Fed to set monetary policy based on a mathematical rule.

Trump will have a chance to appoint five of the seven members of the Fed's Washington-based Board of Governors, including a now open job of vice-chair in charge of financial supervision. Today: "I like low rate policy".

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