Granted, The Fed has an impossible mandate from Congress (what happens when you let lawyers run the show): to provide price stability AND full employment. That said, this is purely political:
Yellen in October when she though Hillary would win Please watch the vid:
Federal Reserve Chairwoman Janet Yellen offered an argument for running the U.S. economy hot for a period to ensure moribund growth doesn’t become an entrenched feature of the business landscape, during a speech at a Boston Fed conference.
President Trump Grows the Economy BIGLY:
America’s labor market might not be as great yet as President Donald Trump wants, but by almost any measure, it’s getting better.
Employers added an above-forecast 235,000 positions in February, while measures of joblessness and underemployment improved, the Labor Department’s monthly report showed on Friday. Wage growth picked up and the share of prime-age Americans in the labor force rose to the highest since 2011, suggesting the economy’s strength is drawing people off the sidelines.
While some of last month’s labor-market gains can be chalked up to unseasonably warm weather, particularly in construction, the figures are still solid and effectively seal a Federal Reserve interest-rate increase next week. Analysts expect wage gains to gradually accelerate further, which will underpin consumer spending, the principal driver of economic growth, amid a first quarter that’s looking tepid.
Yellen now the Trump is President ans is YUGELY succeeding:
With monetary policy still modestly accommodative, the U.S. central bank should continue to raise interest rates slowly to keep jobs plentiful and inflation low, Federal Reserve Chair Janet Yellen said on Thursday.
“I think that allowing the economy to run markedly and persistently “hot” would be risky and unwise,” Yellen said in remarks prepared for delivery to the Stanford Institute for Economic Policy Research.
While there are no signs as yet that the Fed is behind the curve or the economy is in danger of a sudden surge in inflation, she said, “I consider it prudent to adjust the stance of monetary policy gradually over time.”
So much for an impartial Federal Reserve. It’s time for Yellen to be called on the carpet.
