Federal Reserve Chair Throws Cold Water on Trump’s Economic Plan
Yellen cautioned lawmakers that if they spend a lot on infrastructure and run up the debt, and then down the road the economy gets into trouble, “there is not a lot of fiscal space should a shock to the economy occur, an adverse shock, that should require fiscal stimulus.”
In other words, lawmakers should consider keeping their powder dry so they have more options whenever the next economic downturn comes along.
Trump was harshly critical of Yellen during his campaign. But testifying before the Joint Economic Committee, Yellen said she is not going to quit just because Trump won the election. Rep. Carolyn Maloney, D-N.Y., asked Yellen, “Can you envision any circumstances where you would not serve out your term as chair of the Federal Reserve?” “No, I cannot,” answered Yellen, “It is fully my intention to serve out that term.” Yellen’s appointment goes through January 2018.
More: Federal Reserve Chair Throws Cold Water On Trump’s Economic Plan : The Two-Way : NPR