Trump and Yellen may not be an odd couple after all

WASHINGTON: At first glance, US President Donald Trump and Federal Reserve chair Janet Yellen may have little in common.

Yellen is an academic economist and veteran of Democratic administrations who is committed to an open global economy, while Trump is a real estate mogul with an electoral base suspicious of the economic order Yellen helped to create.

Yet the two may have interests in common now that Trump is president and both want to get as many Americans working as possible.

Since her appointment as Fed chair in February 2014, Yellen has kept interest rates low and she currently pledges to raise them only slowly even though unemployment, at 4.5 per cent, is at its lowest in nearly ten years.

Meanwhile, Trump’s election campaign promises to cut taxes, spend money on infrastructure and deregulate banking, have helped propel a surge in the US Conference Board’s consumer confidence index to its highest level since the internet stocks crash 16 years ago.

Former Fed staff and colleagues who know Yellen said Trump’s surprising remarks this week in a Wall Street Journal interview, in which he did not rule out Yellen’s reappointment to a new four year term next year, are not as outlandish as they may appear now that the president has a vested interest in keeping markets and the economy on an even keel. — Reuters