BREAKING NEWS Cal OES positions extra firefighting resources in Tehama and Colusa counties Full Story
BREAKING NEWS Latest from PG&E on potential PSPS power outages, possibly starting Sunday morning Full Story
SEVERE WX : Freeze Warning View Alerts

Yellen defends Fed against Trump's attacks

Former Federal Reserve chair Janet Yellen on Monday described President Donald Trump's attacks on the Federa...

Posted: Oct 15, 2018 3:51 PM
Updated: Oct 15, 2018 3:51 PM

Former Federal Reserve chair Janet Yellen on Monday described President Donald Trump's attacks on the Federal Reserve as "damaging to the Fed and to financial stability."

Speaking to the annual Mortgage Bankers Association convention here, Yellen said she has confidence in her Trump-appointed successor, Jerome Powell, and that she didn't believe Trump's comments last week describing recent moves to raise interest rates as "loco" would impact Fed policy.

Banking, finance and investments

Business, economy and trade

Donald Trump

Government organizations - US

Interest rates

Janet Yellen

Political Figures - US

The Fed

US federal departments and agencies

US government independent agencies

Government and public administration

Government bodies and offices

US federal government

White House

Yellen nevertheless was clear that she believes presidents should avoid public comments on Fed policymaking.

"I really think it is not a desirable thing for a president to comment so explicitly on Fed policy," she said. "Obviously, presidents can speak out if they choose to and give their opinions about policy, there's no law against that, but I don't think it's wise and I do think the Fed has a strong reputation for acting in an independent and non-political way and I would not like to see that reputation damaged."

Trump economic advisers have repeatedly defended the President's right to speak his mind about economic policymaking.

"Look -- the President, as a successful businessman and investor, knows a lot about these topics. He's giving his opinion," National Economic Council director Larry Kudlow said on "Fox News Sunday."

The current norm of presidents not commenting on monetary policy stems from 1994, when the Federal Reserve under Alan Greenspan was beginning to raise interest rates as the economy emerged from a recession, spooking the ascendant stock market. Then-President Bill Clinton wanted to speak out against further hikes, but his treasury secretary persuaded him not to, Yellen recalled.

"Rob Rubin, who was I believe a wise adviser, told Clinton it would be self-defeating and counterproductive to criticize the Fed's actions, that it would politicize the Fed, and undermine confidence in a policy that was working," she said. "It was important for markets to know that the Fed has a commitment to price stability."

Last Friday, Trump's Treasury Secretary Steven Mnuchin said in a CNBC interview that while the President "likes low interest rates," he also respects the Fed's independence.

California Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 898799

Reported Deaths: 17305
CountyConfirmedDeaths
Los Angeles2968216974
Riverside657571279
San Bernardino617261070
Orange580101440
San Diego53928867
Kern33669416
Fresno30471436
Sacramento25094482
Santa Clara23881388
Alameda23133456
San Joaquin21528488
Contra Costa18413240
Stanislaus17509396
Tulare17425284
Ventura14124162
Imperial12700336
San Francisco12032140
Monterey1128487
San Mateo11002159
Santa Barbara9715120
Merced9439154
Sonoma9163134
Kings820183
Solano728674
Marin7045128
Madera498174
San Luis Obispo412132
Placer408857
Yolo314458
Butte304652
Santa Cruz275325
Napa192815
Shasta183930
Sutter183712
San Benito143215
El Dorado13084
Yuba129310
Mendocino112121
Tehama8528
Lassen7641
Lake67915
Glenn6523
Nevada6038
Humboldt5619
Colusa5496
Calaveras33917
Amador31716
Tuolumne2624
Inyo22715
Siskiyou1880
Del Norte1781
Mono1762
Mariposa782
Plumas630
Modoc290
Trinity260
Sierra60
Alpine30
Unassigned00
Chico
Clear
63° wxIcon
Hi: 75° Lo: 48°
Feels Like: 63°
Oroville
Clear
63° wxIcon
Hi: 76° Lo: 48°
Feels Like: 63°
Paradise
Clear
63° wxIcon
Hi: 68° Lo: 46°
Feels Like: 63°
Chester
Clear
44° wxIcon
Hi: 64° Lo: 33°
Feels Like: 40°
Red Bluff
Clear
59° wxIcon
Hi: 76° Lo: 48°
Feels Like: 59°
Willows
Clear
63° wxIcon
Hi: 77° Lo: 45°
Feels Like: 63°
Fire danger will be extreme Sunday-Monday as the biggest dry wind event of the season takes shape. A widespread freeze in the Sierra-Cascades as low as single-digit values possible Sunday night. Mild & sunny weather after Tuesday.
KHSL Severe
KHSL Radar
KHSL Temperatures

Community Events