Source: The Great Recession Blog
Having castigated Janet Yellen for keeping interest rates artificially low in order to help the Obama Administration keep a Democrat in the White House, Trump now likes Janet Yellen and likes low interest rates, too — so much so that he decided this week that it is finally time to get honest with America about his latest flip-flop:
“I do like a low-interest rate policy, I must be honest with you. I think our dollar is getting too strong, and partially that’s my fault because people have confidence in me. But that’s hurting—that will hurt ultimately,” he added. “Look, there’s some very good things about a strong dollar, but usually speaking the best thing about it is that it sounds good.” (The Wall Street Journal)
Trump does know a lot about what sounds good. Candidate Trump always said he loved a strong dollar. Now that he’s the president who benefits from this easy economic juice, he’s reversed positions on low interest and high dollar. Some of Trump’s supporters might wish he’d gotten honest with them about all of this a lot sooner, instead of just sounding good because this month brought another massive change from a guy whose orange color and constant flip-flopping make him look more like King Salmon than anti-establishment president.
He is, at least, the king of flip flops on this issue where he has bounced back and forth more than on most other issues:
Trump has changed his view of Yellen and interest rate policy on multiple occasions…. “Janet Yellen should have raised the rates. She’s not doing it because the Obama administration and the president doesn’t want her to,” Trump said in 2015…. Early in his campaign, Trump’s interest rate policy was in sync with Yellen, adding she was a very capable person. “She’s a low-interest-rate person, she’s always been a low-interest-rate person. And I must be honest, I’m a low-interest-rate person,” Trump told CNBC in 2015. A week later, Trump doubled down on his low rate policy, saying higher rates would be a disaster for the economy…. Then he hit the campaign trail, where he told his voters (predominantly middle- and lower-middle class) that the Fed’s low interest rate policy had lead to vast inequality, leaving many in the middle class behind. While campaigning in Ohio, Trump said the Fed’s low interest policy had created a “false economy.” He said monetary policy needed to change, to provide a true reflection of asset prices. “At some point, the rates are going to have to change. The only thing that is strong is the artificial stock market,” Trump said at a rally in Ohio…. then there’s the time he said she should be “ashamed” of her low interest rate policy. (Investopedia)
A lot of Candidate Trump’s supporters liked it when he often hinted that Janet Yellen would have to go once he got elected, just like they liked it when he was going to lock up crooked Hillary. Last Wednesday, however, Trump aligned himself completely with the nation’s central bank even to the point of indicating he may actually reappoint Janet Yellen for a second four-year term as Fed Head.
Just as Hillary and Bill became “good people” as soon as Trump won the election, so Yellen is now a person about whom he says, “I like her, I respect her.” Is that any wonder, since Trump’s Goldman Boys, Steven Mnuchin and Gary Cohn, have done nothing but praise Fed Chair Janet Yellen?
In an article last year, “Trumponomics: Going for a Ride on the Trump Train,” I warned that Trump’s Goldman-Sachs cabinet members were an almost certain sign of where his administration would head once he got in office. A lot of readers on Zero Hedge were upset that I wasn’t giving Trump a chance to even get into office before I pointed out that Trump’s promises were going to run off the rails quickly, but I call things as I see them, regardless of how popular that is.