WASHINGTON (AP) — Janet Yellen mentioned she was disappointed that President Donald Trump did not supply her a second term as Federal Reserve chair, however helps her central financial institution successor, Jerome Powell, who takes over on Monday.
Powell, a Fed board member since 2012, is “considerate, balanced, devoted to public service. I’ve discovered him to be a very considerate policymaker,” Yellen mentioned in an interview with CBS’ “Sunday Morning.”
She additionally mentioned the inventory market — the Dow Jones industrial common closed at 25,520 Friday after a 665-point drop — was “excessive,” and that the monetary system was in stronger form to deal with a sharp sell-off than it was throughout the 2008 monetary disaster. She cited modifications put in place since that point; Trump has been vital of that effort.
“”The monetary system is a lot better capitalized. The banking system is extra resilient,” Yellen mentioned. “Our general judgment is that, if there have been to be a decline in asset valuations, it will not harm unduly the core of our monetary system.”
Yellen, appointed by President Barack Obama, was the primary girl to lead the Fed. Her four-year term ended Friday. She is becoming a member of the Brookings Institution suppose tank.
Yellen famous that it has been frequent for Fed chairs to obtain a second term even after they have been first nominated by a president of the opposite occasion.
“I made clear that I’d be prepared to serve one other term and so sure, I do really feel a sense of disappointment,” she mentioned.
Trump was extremely vital of Yellen throughout the 2016 marketing campaign, however took to praising her after turning into president. Nonetheless, he determined in opposition to reappointing the Democrat in favor of nominating Republican Powell.
Before turning into Fed chair in 2014, Yellen had served as the central financial institution’s vice chair and was president of the Fed’s San Francisco regional financial institution.
“I have been in excessive degree positions within the Federal Reserve for a few years, the place I feel I’ve had a seat on the desk to make the arguments that I believed wanted to be made and to advocate for good coverage,” Yellen mentioned.
Yellen was requested whether or not she believed the financial system was underneath risk as a result of shares had risen too excessive, creating an asset bubble that might burst, with disastrous outcomes.
“I do not need to say too excessive. But I do need to say excessive,” Yellen mentioned, including that it was “a supply of some concern that asset valuations are so excessive.”