Myth-Busters - Will Trump Flip His Position On Yellen?

[jct74]

https://www.youtube.com/watch?v=bYxF-jjFXzQ
https://www.youtube.com/watch?v=bYxF-jjFXzQ



Trump is not bashful about flipping positions. While campaigning, he correctly pointed out that we're in a bubble and that The Fed is responsible for it. But as President, will Trump flip and call on Yellen to keep rates low, or even lower them? Will he call for more air to be blown into the bubble? Dr. Paul tackles this (and more) on today's Myth-Busters!

[Zippyjuan]

Trump can't fire her. Her term as Chairman runs through February, 2018 so his position on her does not matter. "Will he call for more air in the bubble?" Like he can't fire a chairperson (though a president can nominate somebody, they can't fire them once on the job), he also cannot tell them what policies he wants them to have. He can suggest, but he cannot force them to do anything. He could decide not to re-nominate her for another term.

Dr Paul mentions possible stagflation in the video. Stagflation is high price inflation, high unemployment, and a stagnant economy. We don't have high price inflation and unemployment is not high and the economy is not stagnant. We did have it in the 1970's. It was fought with sharply raised high interest rates (mortgages got to over 20%) which resulted in higher unemployment (double digit by 1980) before inflation rates began coming down. The Federal Funds rate (currently about half of one percent) was more than 13%. Inflation got as high as 15% and unemployment was higher than it was during the Great Recession.