Facing sustained criticism from Republicans, Federal Reserve Chairwoman Janet Yellen is avoiding commenting on the presidential election or its implications for markets, a stance that could leave the central bank underprepared for the risks that some investors see in a Trump victory.
Ignoring an election with significant ramifications for U.S. economic policy is unusual for the Fed. Anything that could spook investors would generally be a reason for the central bank to exercise caution and delay raising rates. Just this year, the Fed has cited shaky global financial markets and the uncertainty generated by the anticipation of the United Kingdom’s Brexit vote to leave the European Union as reasons to stave off rate hikes.
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