- Janet Yellen, who ran the Federal Reserve for four years, says that President Trump's critical remarks about Federal Reserve policy could be damaging to the central bank, Bloomberg reports.
- “To politicize it and to undermine that is something that is essentially damaging to the Fed and to financial stability,” Yellen said in Washington at the Mortgage Bankers Association's annual convention.
- "Presidents can speak out if they choose to and give their opinions about policy. There’s no law against that, but I don’t think it’s wise," she added.
- Still, she doesn't think Trump's criticism of the Fed raising interest rates will change the Fed's actions and she defended her successor, Jerome Powell.
- The Fed last increased its benchmark interest rate last month, raising it by 25 basis points to 2.0%-2.25%. It's widely expected to hike interest rates again in December.
- The 10-year U.S. Treasury note yield is up 0.8 basis point to 3.16% in midday trading; Financial Select Sector SPDR ETF (NYSEARCA:XLF) -0.09%.
- ETFs: PLW, GOVT, EGF, TAPR, FTT, FIBR, USTB
- Now read: 5 Reasons Financial Stocks Are Going Higher From Here
Original article