"Republican presidential candidate Donald Trump said on Monday that U.S. Federal Reserve Chair Janet Yellen was keeping interest rates low because of political pressure from the Obama administration, questioning the motives of an institution whose work hinges on maintaining its independence.
'Well, it's (the interest rate) staying at zero because she's obviously political and she's doing what Obama wants her to do,' Trump told CNBC in a phone interview, saying Yellen should be 'ashamed' of what she was doing to the country."
This is an adroit move on Trump's part, but I doubt that Yellen is playing this role specifically. She simply believes the same Keynesian nonsense that Obama's advisors believe. I do not believe for a minute that Obama has any real understanding of economics. He has never shown even a rudimentary, passing familiarity with the dark arts.
"'Politics simply does not come up,' he said. 'We look at the economic data and ... everyone around the table is committed to achieving our dual mandate' of maximum employment and stable prices, Kashkari said."
This is likely true. But it belie's the fact that most everyone in the room believes the same nonsense economic flapdoodle. The flapdoodleness of the belief is clearly ascertained by the 8 year long failure of acting on the belief to perform as advertised. Beliefs can be implemented but seldom have the outcome desired. This is one of the strong tell tails that a policy is belief, and not fundamentally grounded in fact, and experience.
No, Yellen is likely a true believer, and it is Obama who is the smiling bumpkin banging around in the back of the buckboard wagon with the turnips. Both believe all that is necessary is a little more Keynesian stimulus and, Bam, it will work. They just know it!
The only remaining question is how much longer we will tolerate this Keynesian nonsense before we shut it down, and return to more sane economic policies which do not include bankrupting the Republic in order to follow the beliefs of a true believing few.
Now would be good, later will just cost us that much more.
It is funny to watch Donald make hay while the sun shines, at the expense of the progressive true believers. I just wish it has some valuable end.