I’m guessing Yellen was right that Donald didn’t want her because she’s a woman and Obama appointed her.
Powell was a bad pick for Fed Chair…but that is what you get with Trump. Janet Yellin should have been retained for another 4 year term. But Trump is so myopically focused on erasing all things Obama and with putting all white males in the key positions of power…white nationalism rules the day.
Yup. Mr “I Am Women’s Biggest Supporter” doesn’t support them when they are feisty, smart and in a position of power.
And don’t swoon over his macho tactics.
CBS SUnday Morning did a wonderful piece on outgoing (now outgone) Chair Janet Yellin. I’m waiting for a snarky Trump or maybe Sarah rebuttal. They are just that small. Or, in their favorite word, “little”.
My only criticism of Yellen was her reluctance to raise interest rates. For an economy that has been growing for close to nine years now with unemployment close to 4%, the fed interest rate should be at least 5%. We’ll never see that rate again because our economy is dependent on low rates. If mortgage rates were raised to 7%, the housing market would collapse.
For every one percent interest rate increase, the payment on our 20 trillion debt would increase by 200 billion a year.
That is the real reason we will never see interest rates rise to where they should be.
I had heard that Yellen was “disappointed” that Rump hadn’t renewed her term. IMO, she should consider herself quite lucky. The upcoming financial sh*tshow in this country coupled with the current regime is nothing she’d want to have to deal with.
Don’t bet on it. I have seen much higher interest rates than 7%. The housing market is driven by demand and demand is going to strengthen as millennials start looking for their own homes. It is simple demographics.
Powell’s policy ideas are pretty much the same as Yellen’s but he’s less experienced and less knowledgeable, so that’s almost certainly true.
Sure, Ive seen mortgage interest rates in the mid teens during the Volcker years. The median price for a new home was $55,700 in 1978. The median price for a new home today is $335,400. Adjusting for inflation, wages have flat lined since 1978.
Currently, the average selling price of all homes combined is $206.000. At least thirty five percent would be added to a mortgage payment at 7% from the current rate.
Hopefully he’ll ask her for advice!
More turbulence today
https://www.washingtonpost.com/business/economy/dow-drops-more-than-300-at-opening-extending-fridays-losses/2018/02/05/624f72c6-0a80-11e8-8890-372e2047c935_story.html?utm_term=.f9ee83103297
Edit: and holy shit is fox news pulling away because they recognize Donald is probably heading into a death spiral? Maybe they did learn something from Dubya even it it took two times.