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

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Janet Yellen said: ‘I made clear that I would be willing to serve another term and so yes, I do feel a sense of disappointment.’






Janet Yellen said: ‘I made clear that I would be willing to serve another term and so yes, I do feel a sense of disappointment.’
Photograph: Brendan Smialowski/AFP/Getty Images

Janet Yellen said on Sunday she was disappointed that Donald Trump did not offer her a second term as chair of the Federal Reserve. But she also expressed support for her successor, Jerome Powell, who takes over on Monday.

Yellen was appointed by Barack Obama as the first woman to lead the Fed. Her four-year term ended on Friday; she will now join the Brookings Institution thinktank.

Speaking to CBS’s Sunday Morning, she noted that it has been common for Fed chairs to receive a second term even when they were first nominated by a president of the other party.

“I made clear that I would be willing to serve another term and so yes, I do feel a sense of disappointment,” she said.

Trump was highly critical of Yellen during the 2016 election but praised her after becoming president. He decided against reappointing the Democrat in favor of nominating Powell, a Republican.

Powell, a Fed board member since 2012, is “thoughtful, balanced, dedicated to public service”, Yellen said. “I’ve found him to be a very thoughtful policymaker.”

The Dow Jones industrial average closed at 25,520 on Friday after a 665-point drop. Yellen said the financial system was in stronger shape to handle a sharp sell-off than it was during the 2008 financial crisis.

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

“The financial system is much better capitalized,” Yellen said. “The banking system is more resilient. Our overall judgment is that, if there were to be a decline in asset valuations, it would not damage unduly the core of our financial system.”

Yellen was asked if she believed the economy was under threat because stocks had risen too high, creating an asset bubble that could burst, with disastrous results.

“I don’t want to say too high but I do want to say high,” she said, adding that it was “a source of some concern that asset valuations are so high”.

Before becoming Fed chair in 2014, Yellen was the central bank’s vice-chair and president of the Fed’s San Francisco regional bank.

“I’ve been in high-level positions in the Federal Reserve for many years,” she said. “I think I’ve had a seat at the table to make the arguments that I thought needed to be made and to advocate for good policy.”

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