As Trump takes office today, we look forward at the inevitable conflict to come between the President and the Fed. The tug-of-war may come thanks to the Fed’s target 2% inflation, the Fed’s lack of tech savvy, or something completely different.

Donald Trump and Janet Yellen Look to Be on a Collision Course

A New York Times article points out some interesting scenarios where President-Elect Trump’s economic policies may be at odds with the traditional stance of the Fed. The main sticking point may be in defining what amounts to a “growing” economy. Irwin said he sees a situation where Trump’s advisors may see the target 2% goal in GDP growth as inadequate, look instead to 3.5%-4%.

Yellen and company could see this as “overheating” an economy that’s still struggling. Such a situation could prompt less monetary action or a lowering of interest rates to combat what the Fed perceives as too aggressive growth.

New Doves will Soon Roost at the Fed

New Fed Presidents will soon take a seat at the FOMC’s table, as Business Insider reports. http://schiffgold.com/key-gold-news/fed-friday-trump-yellen-verge-clash/