President Trump probably isnt going to like what the Fed will do next

As Federal Reserve Chair Janet L. Yellen prepares to enter what could be her final year in her post, she may suddenly find herself in the crosshairs of the new president.

President Trump has pledged to slash taxes for businesses and consumers, boost spending on infrastructure and the military, and spur the economy to 4 percent growth. But the Federal Reserve could end up pushing the economy in the other direction.

The central bank is charged with a dual mandate of keeping unemployment low and prices stable. With the unemployment rate at or under 5 percent last year, the Fed resumed a campaign of hiking interest rates in December, hoping to avoid an outcome in which the economy overheats and prices spike. This week, the Fed meets again, and though it's not expected to raise rates, the market expects additional hikes in June and December.

If Trump gooses economic growth with spending and tax cuts — or if there are signs of substantially higher inflation — the Fed might be forced to move even faster.

https://www.washingtonpost.com/news/wonk/wp/2017/01/31/president-trump-probably-isnt-going-to-like-what-the-fed-will-do-next/?tid=pm_business_pop&utm_term=.5dd41fccf7f5#comments