Fed Chair takes Subtle Shot at Trump Deregulation Efforts

Sep 19, 2017 No Comments by

In her remarks at the recent Jackson Hole conference on monetary policy, Federal Reserve chair Janet Yellen praised the new financial regulations enacted during the Obama Administration. Most observers interpreted Yellen as repudiating the current efforts in the Trump Administration to roll back at least some of the new constraints on banks. Financial publications ran headlines suggesting that Janet Yellen had just torpedoed her chance of being reappointed chair when her current term expires (in February next year).

In Carlos’ article last month (i.e. July 2017), he spelled out the possible connection between the Trump Administration’s deregulation plans, and the Fed’s need to unwind its balance sheet. This is purely speculation on our part, but it’s possible that Janet Yellen sees the writing on the wall, and now thinks she can gracefully exit without being at the helm when the whole house of cards comes crashing down.

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Whatever informal, behind the scenes meetings—with or without cigars—may have occurred before Janet Yellen was formally offered the job, she wouldn’t have dreamed that she’d end up working side by side with a President Donald Trump. (Yellen was officially nominated in October 2013, and was sworn in as Bernanke’s replacement in early 2014.) So even though she knew she was coming in to oversee a gradual tightening of policy, it’s entirely possible that she’s had enough and Yellen wants to get out while she still can.

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Julie Ann Hepburn, National Private Client Group – Lara-Murphy Report

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About the author

Julie Ann Hepburn, is a Private Banking Expert and Financial Coach. She is the founder and principal of National Private Client Group, LLC , a Chicago based financial consulting group. Ms. Hepburn is a licensed finance professional, and serves as an agent and consultant for several major mutual insurance carriers. For full bio, please see: http://nationalprivate.com/bio.html
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