Donald Trump and Janet Yellen Look to Be on a Collision Course
Janet L. Yellen, the Federal Reserve chairwoman, made it clear Wednesday that she believes that the American economy is pretty much back on track.
And that, in turn, sets the stage for a potential conflict with the incoming Trump administration in the months and years ahead.
Congress assigns the Fed two goals: seek maximum employment and maintain stable prices. Ms. Yellen, in a speech in San Francisco, rather explicitly made clear that the nation isn’t far from attaining those goals.
“Now, it’s fair to say, the economy is near maximum employment, and inflation is moving toward our goal,” she said. The unemployment rate, 4.7 percent, is back near where it was before the 2008 recession. And “although inflation has been running below our 2 percent objective for quite some time, we have seen it start inching back toward 2 percent last year.”