How Trump could soon be at war with Fed Chair Yellen

Janet Yellen is heading toward a potential war with President Donald Trump. A hike in interest rates could put a lid on a stock market rally the president loves to celebrate.

Read more at Politico: How Trump could soon be at war with Yellen – POLITICO

The Federal Reserve chair, with one year left in her tenure as the world’s most powerful central banker, is almost certain to announce a hike in interest rates by one-quarter point next Wednesday.

She and her Fed colleagues could boost rates further throughout this year, potentially putting a lid on a stock market rally the president loves to celebrate and taking the punch out of a package of tax cuts and infrastructure spending the White House hopes will juice the economy next year and beyond.

And if the Fed conducts an aggressive campaign of rate increases, economists say it could spur a recession in Trump’s first term that dogs Republicans in the 2018 midterm elections and complicates the president’s potential reelection bid in 2020.

Read more at Politico: How Trump could soon be at war with Yellen – POLITICO