President Donald Trump is expected to appoint Federal Reserve governor Jerome Powell to the top position at the central bank on Thursday, according to reports in Bloomberg and the Wall Street Journal.
Powell would replace the current Federal Reserve chair, Janet Yellen, who was appointed by former President Barack Obama in 2014. Her predecessor, Ben Bernanke, led the institution beginning in 2006. Yellen’s first and only term will end on February 3; if Trump follows through on replacing her, that would mean the only woman to hold this position so far will also serve the shortest possible term. Every chairman to hold the position has been reappointed since 1979.
The reasons behind Trump’s decision to appoint another Fed chair instead of reappointing Yellen aren’t entirely clear. There is no recent precedent for such a change, as Bloomberg notes — every other Fed chair has been reappointed by a president from the party opposite of the president who first nominated them. What’s more, Trump did not appear to have any qualms with her performance. As recently as Wednesday, the president praised Yellen as “excellent.”
As best as many can tell, the president is removing Yellen just because he can.
During an interview with Fox Business Network last week, Trump told host Lou Dobbs that selecting his own Fed chair would be a way of leaving his own legacy as president.
“In one way I have to say, you like to make your own mark… which is maybe one of things that she’s got a little bit against her,” Trump said.
When pushed on what his administration has accomplished since taking office in January, Trump frequently cites the appointment of Justice Neal Gorsuch to the Supreme Court among his top accomplishments.
I agree getting Tax Cuts approved is important (we will also get HealthCare), but perhaps no Administration has done more in its first…..
— Donald J. Trump (@realDonaldTrump) October 21, 2017
…9 months than this Administration. Over 50 Legislation approvals, massive regulation cuts, energy freedom, pipelines, border security….
— Donald J. Trump (@realDonaldTrump) October 22, 2017
…2nd Amendment, Strong Military, ISIS, historic VA improvement, Supreme Court Justice, Record Stock Market, lowest unemployment in 17 yrs!
— Donald J. Trump (@realDonaldTrump) October 22, 2017
It is difficult, however, to argue with the president that Yellen was anything other than “excellent” at her job, which makes her non-reappointment all the more shocking.
In September, the country hit a 16-year low at 4.2 percent, while the economy enters its ninth year of expansion. Yellen also maintained low inflation and interest rates during her tenure.
The stock market has continuously reached record highs, something Trump loves to attribute to himself and frequently mentions in his tweets.
Stock Market just hit another record high! Jobs looking very good.
— Donald J. Trump (@realDonaldTrump) October 24, 2017
This invites further criticism of a president who has appointed few women to top leadership roles within his administration and cabinet, has made numerous misogynistic remarks over the years, and has been repeatedly accused of inappropriate sexual behavior. Trump called the allegations of sexual assault and harassment against him “fake news,” and Press Secretary Sarah Huckabee Sanders said last week that the official White House position was that the accusers are liars.