Did Fox News Just Officially Rule Out Janet Yellen?

Oh, the irony.

More than a few (dozen) people have pointed out that Donald Trump either doesn’t remember what he said 13 months ago about the stock market being “false” and largely a figment of Janet Yellen’s imagination, or more likely, doesn’t care because this is a man who has never been accused of being consistent.

See much like the jobs data, the stock market was “fake” when Obama was President, but now it’s real. In other words, things are “fake news” when Trump can’t take credit for them, but once he can, they’re no longer fictitious.

 

But Trump can’t sweep the stock market contradiction under the rug, because now he’s got to choose whether to continue with the policies that have driven his beloved stock market to all-time highs, or else usher in a new era characterized by some semblance of sound money and thereby risk a market correction.

Fortunately, he’s got an “out” in Jerome Powell. That is, he can keep the ideological bent at the Eccles building the same without having to suffer the humiliation of reappointing the person he said “should be ashamed of herself” last year.

Well apparently, this evening, a new interview with Trump will air on Fox (so that’s two interviews with Fox Business in the space of four days) and here’s what he will say about Yellen according to the Twitter feed of network producer Brian Schwartz:

Yellen

I see. Well, if Trump wants to be able to continue to tweet about record high equity prices, he better hope and pray that whoever he appoints in an effort to “make his own mark” on the Fed sticks to the script, otherwise Trump’s “mark” on monetary policy is going to accompanied by a black “mark” on risk assets.

And God knows Trump hates things that are “black.”

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4 thoughts on “Did Fox News Just Officially Rule Out Janet Yellen?

  1. > he’s got to choose whether to continue with the policies that have driven his beloved stock market to all-time highs, or else usher in a new era characterized by some semblance of sound money and thereby risk a market correction.

    Totally agree with that and also with what Jim Grant said eleven months ago about Trump, “He is going to come to like that bubble and to adopt it on his own”.
    https://www.cnbc.com/2016/11/28/donald-trump-will-come-to-like-the-markets-big-fat-ugly-bubble-jim-grant-says.html

  2. Interesting. DT put expectations to roughly net neutral hawk versus dove. Now he’s flashed the Powel card using the Fox tool this afternoon via that tweet from the producer time stamped 1:05 PM – I assume that’s Eastern. Interesting, at that precise time, the 10 Y note traded down in a classic head fake checkback format then rallied up into the 1:30 PM time frame before dropping sharply then ranging to close up intra-day. Not sure what this tells us but it’s pretty clear there was accumulation leading up to the 1:00 time frame – which would have provided ample cover for the front running team to accumulate some stuff themselves ahead of an almost assured intraday reversal to the upside in note prices.

    Let’s watch him move the other way now – or maybe press this – I’m guessing the entire decision tree on what he tweets or telegraphs is dictated by the stochastics on the note price so he can stretch the market rubber band as far on one direction as possible before having Sonny take the other side of the trade ahead of the hawkish lean. This is all a warm-up for the big event when the final selection will have everyone prepared for the wrong outcome and off-sides.

    • Yep because after all the expected nominee Powell was appointed to the fed by obama. Will trump really choose that? I think he wants someone both very dovish and very much a puppet of trump.

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