Monday, 24 September, 2018

Yellen heading to Brookings

Yellen chairwoman of the Federal Reserve in Washington on Oct. 31 2017. LEXEY SWALL  NYT Yellen chairwoman of the Federal Reserve in Washington on Oct. 31 2017. LEXEY SWALL NYT
Nellie Chapman | 05 February, 2018, 02:45

She also said the stock market - the Dow Jones industrial average closed at 25,520 Friday after a 665-point drop - was "high", and that the financial system was in stronger shape to handle a sharp sell-off than it was during the 2008 financial crisis.

Several Fed policymakers have said that President Donald Trump's restructuring of the USA tax code, including an estimated $1.5 trillion in corporate and individual tax cuts, could spur growth this year.

"I made it clear that I would be willing to serve, so yes, I do feel a sense of disappointment" about not being renominated, Yellen said. She cited changes put in place since that time; Trump has been critical of that effort.

She was appointed by President Obama in 2014 and has been the first woman to hold the position.

Janet Yellen stepped down as Fed chief on Saturday after one term, after US President Donald Trump opted to replace her with Republican Jerome Powell.

Wells Fargo says Federal Reserve sanctions on the bank after a fake accounts scandal and other problems could reduce the embattled bank's profits by as much as $400 million this year. Though the bank is technically open for business, it's planning on trimming its deposits from financial institutions and some commercial clients in response to the central bank's action. "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, who was not renominated by President TrumpDonald John TrumpSchiff: Nunes gave Trump "secretly altered" version of memo Davis: "Deep state" existed in '16 - but it elected Trump Former Trump legal spokesman to testify to Mueller about undisclosed call: report MORE to lead the central bank, will join former Fed Chairman Ben Bernanke at the think tank, Brookings announced Friday.

President Trump's target for U.S. economic growth has been 3%, but he has also spoken of his desire to see it expand at a rate as high as 6%. Regulators can't allow "pervasive and persistent misconduct at any bank", Yellen said in a statement.

"I don't want to say too high". The only woman to serve as the head of the United States central bank described her work at the Fed as "the core of my existence". "But it is a source of some concern that asset valuations are so high".