Janet Yellen: Trump Doesn't Grasp Economic Policy

President Donald Trump has shown "a lack of understanding" about the Federal Reserve, according to the Fed's former chair Janet Yellen.

Yellen, who was not reappointed by the president after he assumed office, was asked in a radio interview with Minnesota Public Radio's "Marketplace" on Monday whether she believes Trump "has a grasp of economic policy."

She replied: "No, I do not."

"Well, I doubt that he would even be able to say that the Fed's goals are maximum employment and price stability, which is the goals that Congress have assigned to the Fed," she continued. "He's made comments about the Fed having an exchange-rate objective in order to support his trade plans, or possibly targeting the U.S. balance of trade. And, you know, I think comments like that shows a lack of understanding of the impact of the Fed on the economy and appropriate policy goals."

Yellen said later, "And when I continually hear focus by the president and some of his advisers on remedying bilateral trade deficits with other trade partners, I think almost any economist would tell you that there's no real meaning to bilateral trade deficits, and it's not an appropriate objective of policy."

Trump repeatedly attacked Yellen on the campaign trail, saying in September 2016 she should be "ashamed" of what she did to the country.

Yellen is currently a fellow at the Brookings Institution and will soon become president of the American Economic Association.

• Former Fed Chief Yellen: Next Move Could Be Rate Cut
• From Greenspan to Yellen, Economic Brain Trust Backs Carbon Tax