Poor Janet Yellen: The Federal Reserve chair had a date with the House Financial Services Committee this morning, and amidst her preparations apparently missed the news that she’d already been replaced. And so she dutifully trudged up to Capitol Hill with her own personal dual mandate intact: Give our legislators an update on the economy, and continue to impress upon President Trump that she’s the low-rates gal for him.
She repeated her view that an increasingly tight labor market would put upward pressure on wages and prices, but added, “We’re watching this very closely and stand ready to adjust our policy if it appears that the inflation undershoot will be persistent.”
You hear that, Don? Just have Gary explain to you that what I mean by “adjust our policy” is, no more rate increases. Oh, you’re busy dealing with your idiot son? And Gary’s decided, in his role as host of “The Apprentice: Fed Chair” that Gary himself is the man for the job? OK, then. I’ll start preparing that massive rate increase for later this month.