Trump Met With Janet Yellen; Meeting Lasted 30 Minutes

Tyler Durden's picture

The anticipated meeting between president Trump and Janet Yellen has concluded, and according to Fox News, it lasted no more than 30 minutes, running from 2:00PM to 2:30PM, or barely enough for Trump to stop patting himself on the back about the yuuge Dow Jones rally under his presidency.

And to think it was a just over a year ago that Trump was bashing Yellen for creating a stock bubble with the help of low rates, shortly after urging his fans to sell their stocks.

As a reminder, last September, Trump said that "keeping the rates artificially low so the economy doesn't go down so that Obama can say that he did a good job. They're keeping the rates artificially low so that Obama can go out and play golf in January and say that he did a good job. It's a very false economy. We have a bad economy, everybody understands that but it's a false economy. The only reason the rates are low is so that he can leave office and he can say, 'See I told you.'

Which in light of recent Trump tweets is... ironic.

The White House's statement on the meeting was brief, and according to Fox Business reporter Brian Schwartz, "[Trump] expressed in past that he’s looking at renominating Yellen. Meeting was structured just the same as other candidates”

Still, judging by the online betting market, Yellen's odds have improved and the Fed Chair is back to second place, behind Powell, who has emerged as the online community's favorite candidate by a wide margin.

And while John Taylor's star appears to have set after bursting on the scene last week, following a report that Trump has taken a shine to the Stanford economist, here is ABN Amro's Nick Kounis on what would happen if the biggest possible hawk of the bunch were to be appointed as the next Fed chair:

Global Daily – What happens if Taylor rules the Fed?

 

Fed View: Taylor would be a hawkish surprise to markets – The White House has confirmed that five candidates are in the running to take over as Fed Chair in February 2018. The candidates on the short list are Kevin Warsh, Jerome Powell, Gary Cohn, current Chair Janet Yellen and John Taylor. The latter looks to have been a late addition in the race and seems to be a serious candidate. Probability based on bets on the Predictit website suggest John Taylor is now joint second favourite to succeed after front-runner Jerome Powell, who is currently a member of the Governing Board of the Fed. Briefings suggest President Trump will announce his choice for Fed Chair nominee before 3 November.

 

Whether the odds above are an accurate reflection of the chances of each candidate is debatable. Ultimately, it is difficult to predict the choice that President Trump will make. The choice of Mr. Powell and Ms. Yellen would signal continuity. Even the choice of either Mr. Warsh or Mr. Cohn would not necessarily indicate that there would be a significant change in the direction of monetary policy.

 

However, if John Taylor becomes the new Fed Chair, the chances increase that interest rates would rise more quickly than in the case that the other candidates were appointed. Mr. Taylor – currently a Professor of Economics at Stanford University – developed the famous ‘Taylor rule’ for setting interest rates. It links interest rates to the amount of slack in the economy, the deviation of inflation from the target and the neutral rate. Most estimates of the Taylor Rule imply significantly higher interest rates than where they are currently. For instance, Atlanta Fed researchers calculate a the fed funds rate according to the Taylor Rule in Q3 in a range of 1.8-2.3% depending on the measure of slack used (currently it stands at 1.16%). They used the Fed’s own assumption for the neutral rate in these calculations. Mr. Taylor said last year that the Fed should have raised interest rates faster and that he believes in rules-based monetary policy.

 

So it seems he would be an advocate of a higher trajectory for interest rates. Against that, a number of considerations could temper that view. Although the Fed Chair is crucial to the direction of monetary policy, interest rates are set by voting members of the whole FOMC. Second, when actually ‘in power’ Mr. Taylor could take a more flexible approach. Finally, inflationary pressures still look subdued. Nevertheless, on balance, we still think that if Mr. Taylor was nominated as Fed Chair, it would be a significant hawkish surprise to financial markets.

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Mind the GAAP's picture

Goodbye Mr. Yellen.  Now you can back to your life's work mushing sled dogs around the Alaskan wilderness.

hedgeless_horseman's picture

 

Meeting was structured just the same as other candidates...

...The Aristocrats!

Paul Kersey's picture

Considering his ADHD, that had to be the longest 30 minutes of his life. Some pussies are just not worth grabbing.

Yes We Can. But Lets Not.'s picture

Does it take a half hour to say 'you're fired'?

Quivering Lip's picture

No but it WOOD be pretty HARD to get it up for Janet. I'll give him credit for actually lasting 30 minutes.

kernel_panic's picture

He's way too old without plenty of little-blue-pill assistance.

jcaz's picture

It took her 29 minutes to absorb it and relay her response via her 14th Century models.......

Mullet Master's picture

I think it took Trump the majority of the 30 minutes to figure out who he was talking to Mr. Janet Yellen or Mr. Boris Yeltsin - both look alike.

peopledontwanttruth's picture

They both got their marching orders from the same masters.

U4 eee aaa's picture

I'm giving it better than 50% that she'll be back unless she told him specifically she wants to go

She wants to be the one to fire HIM by crashing the market just before his re-election year

This is it's picture

So she's the new intern? 

I woke up's picture

I wouldn't take credit for any of this if I was him

U4 eee aaa's picture

It is definitely a bizarre move politically

Anteater's picture

Neel Kashkari because he has a dome as big as a casaba.

Ahhhh,ha,ha,ha,ha,ha.

Rainman's picture

"I do like a low-interest rate policy."

    ~ King of Debt to WSJ, 4/12/17

e_goldstein's picture

Tried to grab her by the pussy.

Became confused when he realized she doesn't have one.

NickPeeMe's picture

What makezs you think Trump was the pitcher?

Pliskin's picture

Orange guy sucked on ugly guy/womans pissflaps for 30 minutes, must of done the trick!

"You keep printing, and we'll keep spending, biatch!"

Meeting over!

e_goldstein's picture

I'm going to leave this one right here, Snake.

http://eyebleach.us

JustPrintMoreDuh's picture

Taken credit for a hyper-inflated doomed market ... maybe not the best strategery - GWB

FreeShitter's picture

Trump "You keep printing and buying, ok?"

Yellen "Its transitory mr. president"

GoldHermit's picture

Trump:  You're fired

Then 29.99 minutes of Yellen trying to compose herself before leaving and tipping everyone off she is out.

Ben A Drill's picture

Trump asks Yellen. How bad is it?

Yellen response: Really fucking bad.

Trump: Can we fix this?

Yellen: No!

Trump asks: What should I do?

Yellen answers: Quit before it’s to late.

Trump to Yellen. Your fired!

Yellen says: thank you and have a nice day.

Trump soon gets on the phone and tweets. Problem solved.

Fundies's picture

You're Fiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiirrrrrrrrrrrrrrrrrrrrreeeeeeeeeeddddddddddddddd

nsurf9's picture

I wager neither Trump or Yellen actually know who owns those orginial 1913 Fed Reserve charter memberships.   You know, like the Swiss, Italian and other Rothchild banks that originially chartered it - much less who they've sold our debt to.  I can guarantee they won't tell us, if they did know.

Only the citizens of the United States should control our money. 

And, its creation should be interest free - and, we can fire the MF's, if they screw it up.

We must demand this NOW - with a full audit - that includes the Gold!

Keep saving those 1965 clad 25 cent pieces with you hard work.

Fundies's picture

30 minutes....he's a stayer.

Deep Snorkeler's picture

All testicles have been lost.

Scrotum is the new labia.

 

Blue Steel 309's picture

30 Minutes is not even enough time to establish a topic and common language.

any_mouse's picture

Longer than needed for a quickie.

any_mouse's picture

END THE FED!

No discussion. No Mandate. No Hawks and Doves. No Policy. The End.

FED delenda est!

Sliced into ribbons's picture

Did he ask before grabbing her pussy?

Fiat Burner's picture

Should have fired that bitch on day one. 

Trump is a puppet. It will be business as usual at the Fed no matter who he "selects".

Deep Snorkeler's picture

"I was helping her with her catheter."

"I showed her my putter."

"She had low interest groans."

economessed's picture

Donny:  You knew what you signed-up for, but it still hurts when you managed to kill 99% of the country.

saldulilem's picture

Clear out your desk

JoseyWalesTheOutlaw's picture

Janet.....You're Fired.....

U4 eee aaa's picture

Finally someone around here gets it

JoseyWalesTheOutlaw's picture

The Donald..."It smells like fish in here...tuna" 

Fundies's picture

Her hole healed over decades ago.

onthedeschutes's picture

Trump settled for a gynecological exam of Janet instead of a FED audit.