"Yellen stated, 'How often does the president of a developed country express the view that the interest rate should be set to reduce the debt service cost? This is what you hear in a banana republic.'"
"'I don't think that Warsh walks in with that level of credibility,' Yellen remarked, comparing him to former Fed chair Alan Greenspan, who was respected for his economic expertise."
Janet Yellen condemned Donald Trump's advocacy for lower interest rates, equating it to banana republic behavior. She expressed concern that such political pressure on central banks could result in uncontrolled inflation. Yellen highlighted the importance of maintaining central bank independence and questioned the credibility of Trump's potential Fed chair nominee, Kevin Warsh. She noted that while Warsh's views on AI and productivity could support lower rates, he lacks the respect and credibility that former Fed chair Alan Greenspan commanded. The Fed's last rate cut occurred in December, raising concerns about inflation risks.
Read at www.theguardian.com
Unable to calculate read time
Collection
[
|
...
]