Janet Yellen disappointed Trump did not propose second term as Fed chair

Marsha Scott
February 7, 2018

Four individuals from the organization's board are to be supplanted before the year's over, extending an update of the board, the Fed said Friday.

Jerome "Jay" Powell, the Republican former investment banker tapped by President Donald Trump to lead the U.S. Federal Reserve, will take the reins of monetary policy starting February 5.

Federal Reserve Chair Janet Yellen will join the Brookings Institution, a Washington think tank, on Monday after stepping down from the USA central bank.

The Fed instructed the bank's board to engage in more intrusive oversight of Wells Fargo's senior managers and come up with a plan to hold them accountable if they fall short.

The US stock market has gained more than 30 percent since President Donald Trump took office a year ago, but on Friday, fears about rising interest rates following better-than-expected January jobs data led to the major dip on Wall Street.

"I made clear that I would be willing to serve another term and so yes, I do feel a sense of disappointment", The Guardian quoted her as saying.

As Yellen departs, the only Fed chair in almost 40 years not to be reappointed for a second term, she leaves an economy with unemployment at a 17-year low of 4.1 percent - half the rate when she became chair - quiet inflation and almost four years of uninterrupted growth. He decided against reappointing the Democrat in favor of nominating Powell, a Republican. "I've found him to be a very thoughtful policymaker".

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She cited changes put in place since that time, of which Trump has been critical.

Wages last month posted the biggest annual increase in almost 10 years, with the growing United States economy adding jobs at a solid pace, while business and consumer confidence remains high just as a massive corporate tax reform starts to take effect.

"I don't want to say too high".

Inflation has remained stubbornly below the Fed's two percent target, but the policy statement last week said the central bank expects prices to move up in the near term.

"The financial system is much better capitalized".

Wells Fargo stated that the company is confident it will satisfy the requirements of the consent order it entered into with with the Board of Governors of the Federal Reserve System.

Before becoming Fed chair in 2014, Yellen had served as the central bank's vice chair and was president of the Fed's San Francisco regional bank.

Other reports by MaliBehiribAe

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