Is Janet Yellen Trying to Trigger a Recession For Political Purposes?

Is Janet Yellen Trying to Trigger a Recession For Political Purposes?

Zero Hedge - Wednesday March 8, 2017

by Phoenix Capital Research

Trump might want to put a call in to Janet Yellen.

The Fed is supposed to be a neutral, independent entity. However, that myth went out the window when Bernanke “gifted” QE 3 to Obama in 2012 to aid with the latter’s re-election bid.

The Yellen Fed seems to be even more committed to defining the Fed as nothing more than a leftist establishment mechanism. Back in October when it still looked like Hillary Clinton would win the 2016 Presidential election, Yellen commented that she was considering letting the economy run “hot” meaning allowing inflation to rise without implementing additional rate hikes.

One month later, Donald Trump won the Presidency and Yellen announced she wanted to hike rates in December with three more additional hikes in 2017.

Now, 3Q16 growth was supposedly 3.5%. If that had been true, then Yes, the Fed should consider hiking.

However, since that time GDP growth has collapsed. 4Q16 growth came in at a measly 1.9%. And 1Q17 GDP growth has collapsed from a forecast of 3% in early February to 1.2% today!

And Yellen is still pushing to hike rates.

So, back in October, when the economy was supposedly growing at an annualized rate of 3.5% Yellen wanted to let the economy run “hot.” And now that the economy is growing 2% rate (and soon to be sub-1% rate based on projections) she wants to hike rates multiple times.

Let that sink in for a moment.

It is very difficult to look at the above and not come to the conclusion that Janet Yellen is actively trying to thwart the Trump Presidency. For 8 years under Obama she signed off on maintaining interest rates at zero, permitting the debt to double.

Now that Trump is in office, Yellen wants to hike rates four times in 12 months. And she’s begun worrying about debt levels in her speeches.

Seriously?

The wise thing for Trump would be to ask for Yellen’s resignation. She has completely compromised any last credibility the Fed might have. And she’s now actively pushing to hurt the economy by hiking rates at a time when growth is already rapidly slowing.

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Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

 

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