Obama Fed Chair Throws Cold Water on Liberals' 'Trump Recession' Hopes

[WestVirginiaRebel]

PJ Media

On Wednesday, the Dow Jones Industrial Average dropped more than 700 points and the yield on U.S. 30-year Treasury bonds fell to a record low, sparking fears of an imminent recession. Yet Janet Yellen, former Federal Reserve chairwoman under President Barack Obama, said it is unlikely the U.S. economy is headed into a recession soon.

"Historically, it has been a pretty good signal of recession, and it think that’s when markets pay attention to it, but I would really urge that on this occasion it may be a less good signal," Yellen said on Fox Business Network. "The reason for that is there are a number of factors other than market expectations about the future path of interest rates that are pushing down long-term yields."

Obama's former Fed chairwoman said the 10-year Treasury yield, which stood at 1.623 percent on Wednesday (below the 1.634 percent two-year yield), may not be a good signal for an upcoming recession.

When asked if the U.S. economy was headed into a recession, she said, "I think the answer is most likely no."

"I think the U.S. economy has enough strength to avoid that, but the odds have clearly risen and they’re higher than I’m frankly comfortable with,” she added.

Yellen's prediction may sour the hopes of liberals, who rushed to share the news of an upcoming "Trump Recession" on Twitter.

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Democrats hoping for bad news hurt most...