Trump doesn't understand economics, says former Fed chair Janet Yellen

Trump shot the tarif View attachment 195036

...but he did not shoot the economy.

And he says it is a businessman's expense!

From the BBC:

A former chair of the US central bank has sharply criticised President Trump's economic knowledge.

On American Public Media's Marketplace programme, Janet Yellen said Mr Trump did not understand economic policy or the US Federal Reserve's purpose.

She also said that Mr Trump's focus on the US-China trade deficit was misguided.

The US and China have been in a year-long dispute, which has seen the imposition of trade tariffs.

Ms Yellen, who left the Fed in 2018 and is now at the Brookings Institution research group, also said President Trump's attacks on current Fed chair Jerome Powell were harmful to the public's confidence in the central bank.

Asked on Marketplace, the BBC's US radio partner, if she thought the president had a grasp of macroeconomic policy, she replied: "No, I do not."

She went on to say Mr Trump did not seem to understand the Fed's two responsibilities of controlling inflation and supporting employment.

"Well, I doubt that he would even be able to say that the Fed's goals are maximum employment and price stability, which is the goals that Congress have assigned to the Fed," Ms Yellen told the programme.

On the trade gap with China, she said: "When I continually hear focus by the president and some of his advisers on remedying bilateral trade deficits with other trade partners, I think almost any economist would tell you that there's no real meaning to bilateral trade deficits, and it's not an appropriate objective of policy."

Full Trump economic remedial class:

https://www.bbc.com/news/business-47369123

Trump shot the tarif View attachment 195036

Fed's two responsibilities of controlling inflation and supporting employment.

How does monetary policy influence inflation and employment?

In the short run, monetary policy influences inflation and the economy-wide demand for goods and services--and, therefore, the demand for the employees who produce those goods and services--primarily through its influence on the financial conditions facing households and firms. During normal times, the Federal Reserve has primarily influenced overall financial conditions by adjusting the federal funds rate--the rate that banks charge each other for short-term loans. Movements in the federal funds rate are passed on to other short-term interest rates that influence borrowing costs for firms and households. Movements in short-term interest rates also influence long-term interest rates--such as corporate bond rates and residential mortgage rates--because those rates reflect, among other factors, the current and expected future values of short-term rates. In addition, shifts in long-term interest rates affect other asset prices, most notably equity prices and the foreign exchange value of the dollar. For example, all else being equal, lower interest rates tend to raise equity prices as investors discount the future cash flows associated with equity investments at a lower rate.

In turn, these changes in financial conditions affect economic activity. For example, when short- and long-term interest rates go down, it becomes cheaper to borrow, so households are more willing to buy goods and services and firms are in a better position to purchase items to expand their businesses, such as property and equipment. Firms respond to these increases in total (household and business) spending by hiring more workers and boosting production. As a result of these factors, household wealth increases, which spurs even more spending. These linkages from monetary policy to production and employment don't show up immediately and are influenced by a range of factors, which makes it difficult to gauge precisely the effect of monetary policy on the economy.

Full rebuttal:

https://www.federalreserve.gov/faqs/money_12856.htm

YOU SAID IT: 2019 the time for Trudeau to go
2019 THE TIME FOR TRUDEAU TO GO

Re: This was the year things came undone for Trudeau, Dec. 29

Kudos to Candice Malcolm for her column on Dec. 29 regarding her review of 2018 in which she details PM Trudeau’s year of follies! The continuing narcissistic actions by Trudeau — he recently stated that he expects to win re-election in 2019 — shows again his arrogance, and I can only hope this will be his last year as the so-called leader of Canada.

We can’t afford another four years of his careless mismanagement of our economy with apparently no concerns about our deficit/debt, which he increases daily, and his love for screwing Canadians with more taxes, including the soon-to-be implemented carbon tax.

Recent polls showing that Trudeau’s popularity is at a three-year low is great news and hopefully his “Sunny Days” are coming to a close with Canadian “peoplekind” giving him the boot next October.

Idk just curious, are you living in Canada?

My family is still in Canada, liberal and conservative all agree,they hate Trudeau. [/QUOTE
Ok, thx Idk much about Trudeau except I heard some gals say he is nice lookin, lol.

Idk just curious, are you living in Canada?

No. I've never been there. I'm trying to point out how insulting it is for a foreigner to post day after day negative news stories about another Country.

The op is Canadian, NOT American, yet bashes America relentlessly.

So I'm going to post negative Canadian stories whenever I can on his America bashing threads.

No. I've never been there. I'm trying to point out how insulting it is for a foreigner to post day after day negative news stories about another Country..

You picked a good time!!

Scandal after scandal.