Here’s Why “President Trump” Wants To “Fire” Janet Yellen In 2018





May 06 2016
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Those who had called Donald Trump “stupid”, “clown”, “narcissist”, “pathetic” and whatnot are slowly making a U-turn. The Republicans establishment are throwing their support behind the clown Trump – quietly – in order not to look like a clown themselves. They have stopped laughing now, when they were laughing the loudest for roughly 11 months.

 

Vicente Fox, former Mexico president from 2000 to 2006 – who earlier this year (February) exclaimed he would “not pay” for what he called Donald Trump’s “fucking wall” along the southern border – apologized to Trump on Thursday after the billionaire emerged as the Republican party’s presumptive presidential candidate.

Vicente Fox - Former Mexican President - Apologise to Donald Trump

Mr Vicente said – “I apologize. Forgiveness is one of the greatest qualities that human beings have, is the quality of a compassionate leader. You have to be humble. You have to be compassionate. You have to love thy neighbour.” He then extended an invitation to Trump to visit Mexico. He later admitted nobody knows how many illegal aliens are inside the U.S.

 

British Prime Minister David Cameron has also toned down his criticism on Donald Trump, saying the Republican presidential hopeful deserves “respect”. Because Trump supports “Brexit”, the UK leader refuses to apologize to Trump though for calling him “divisive, stupid and wrong” after the Apprentice star proposed a temporary ban on Muslims last year in the wake of attacks by extremists.

David Cameron – Prime Minister of United Kingdom - Trump Deserves Respect

However, there’s still a bunch of Republican hardcore politicians who couldn’t accept the fact they have lost their bet on their puppet – Ted Cruz – despite throwing everything but the kitchen sink to stop the Trump. House Speaker Paul Ryan, for example, is refusing to support Donald Trump as the Republican nominee for president.

 

Paul insists that the businessman must do more to unify the GOP, a nice way to say Donald Trump must crawl back to the Republican establishment, suck up to them, listen and agree to whatever term and condition that the GOP has prepared for the former reality television host, in exchange for endorsement. A president wannabe himself, Ryan is expected to endorse Trump eventually.

Donald Trump and Paul Ryan

Just to satisfy the full-time Republican politicians’ ego, Trump might just lend his ears to an extraordinary boring rhetoric’s meeting or convention because he still needs to follow certain rules as the Republican nominee. But unlike Ted Cruz who will have no choice but to follow blindly all the “dos and don’ts”, had he succeeded as the Republican nominee, Donald Trump can do cherry-picking.

 

The first thing Trump has promised to change in the financial market, after his victory, is none other than the most powerful person in the world – the Federal Reserve Chair Janet Yellen. The reason – Yellen is not a Republican. It appears Yellen would be jobless when her 4-year term ends on 3rd Feb, 2018.

United States Federal Reserve Chair Janet Yellen

Although she could remain on the Fed’s 7-member board (a post that doesn’t end until 31st, Jan 2024) if “President Trump” decides not to nominate her for another term as chairman, it would be a slap to Yellen as it would be seen as a “sacking”. Trump claims he has nothing against her but purely “inappropriate” to maintain a non-Republican Yellen.

 

In comparison, previous presidents have been willing to keep Fed chairmen in post regardless of their political leanings. Ben Bernanke, a Republican supporter, clinched a second term in 2010 under President Barack Obama, a Democrat. Alan Greenspan was similarly appointed to a third term under Bill Clinton in the 1990s.

Federal Reserve Chair Since 1979 - Paul Volcker, Alan Greenspan, Ben Bernanke, Janet Yellen

In the same breath, Mr Trump unleashes his economic policy – low interest rates, against strong dollar and a more aggressive U.S. debt management. He said – “I love the concept of a strong dollar, but when you look at the havoc that a strong dollar causes … I have friends in China – all they do is watch the dollar. They love to see it go up.”

 

“I am the king of debt, I love playing with it, but now we’re talking about something very, very fragile … I think there are times for us to refinance debt with longer term, we owe so much money … If we raise interest rates and if the dollar starts getting too strong, we’ll have some very major problems” Trump said.

A History of Federal Reserve Interest Rate Since 1979 - Paul Volcker, Alan Greenspan, Ben Bernanke, Janet Yellen

But since Janet Yellen is a “low interest rate person” and Donald Trump supports a low-interest-rate policy, why is he telling the Fed Chair that she would be fired, aside from the excuse that she isn’t a Republican? Why did Trump make a U-turn now when he has previously bitched about Yellen being Obama’s minion, deliberately leaving interest rate low to help his administration?

 

Donald Trump could be smarter than seasoned politicians after all. If he could survive a possible assassination between now and a November clash with Hillary Clinton, and emerges victorious, President Barack Obama may decide to make life difficult for “President Trump” by sabotaging the economy on his way out – hiking interest rates to trigger recession.

Donald Trump and Janet Yellen - You Are Fired

What Trump did is merely playing the pre-emptive game of passing all the blames to Barack Obama and Janet Yellen before they strike. Now that he has made his stand public, Yellen is caught with her dress down. If she raises rate between now and the next inauguration of the new president, and crashes the economy – it’s her and Obama’s fault, not Trump’s.

 

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