Tags: Trump | Yellen | Fed | chairman

Trump: Yellen Will 'Probably' Get Job as Fed Chairman

Monday, 16 Sep 2013 12:53 PM

By Dan Weil

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Now that former White House adviser Larry Summers has withdrawn himself from consideration as Federal Reserve chairman, Fed Vice Chairwoman Janet Yellen is likely to get the job, says real estate billionaire Donald Trump.

"Probably you're going to end up now with Janet Yellen," Trump told Fox News' Fox & Friends. "She's going to keep interest rates low."

The central bank's federal funds rate target now stands at a record nadir of zero to 0.25 percent. And Fed officials say that rate is unlikely to be raised until the unemployment rate hits 6.5 percent. The rate was 7.3 percent in August.

Editor’s Note:
New Video: Obama Plans to Redistribute Seniors’ Wealth

Yellen is "going to be printing money," Trump said. And he has no objections. "I have to say selfishly, as long as I'm in my role as developer, I love cheap money. I've always loved it. ... As to whether or not it's good for the economy, time will tell."

Others see Yellen as a dove too, though they don't put it quite as starkly as Trump.

"Overall, at the margin this probably tilts the Fed toward a bit more dovish feel than what most felt yesterday," James Paulsen, chief investment strategist at Wells Capital Management, told Politico.

“To the extent this puts Yellen back in the lead, I think most will slow down forecasting” that the Fed will soon begin scaling back its economic stimulus efforts."
Many experts don't expect Fed policy to change under Yellen, and some say that's good for financial markets.

"I expect not only a rally in stocks but also a decrease in yields, as the Fed remains in the same path [current Fed Chairman Ben] Bernanke set" under a Yellen nomination, Michael Yoshikami, CEO of Destination Wealth Management, told Reuters.

Editor’s Note: New Video: Obama Plans to Redistribute Seniors’ Wealth

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