Yellen critical of Trump's grasp of economic policy
WASHINGTON — Former Federal Reserve Chair Janet Yellen says she doubts that President Donald Trump has a good grasp of economic policy or even knows the Federal Reserve’s mandates.
“I doubt that he would even be able to say that the Fed’s goals are maximum employment and price stability,” Yellen said in an interview with radio program “Marketplace.” She said Trump has made various inaccurate remarks about the Fed such as that the central bank has an objective for the exchange rate for the dollar that is aimed at supporting the president’s trade policies.
She said comments like that show a “lack of understanding of the impact of the Fed on the economy and appropriate policy goals.” Asked in the interview released Monday if she felt Trump had a grasp of macroeconomic policy, Yellen said, “No I do not.”
The comments marked Yellen’s most pointed criticism of Trump since he decided not to nominate her for a second term as Fed leader. She left the Fed a year ago and was succeeded as chairman by Jerome Powell. Yellen is now a distinguished fellow at the Brookings Institution in Washington.
Yellen said she did not think that Trump’s attacks on Powell and the Fed were having a significant impact on the Fed’s ability to manage the economy. But she said if the attacks continued, Trump could “undermine confidence in the Fed.”
