>> Stocks and interest rates have both shot up since Donald Trump was elected as president. Traders betting that Trump and a Republican-controlled congress would embark on tax cuts and increase federal spending that could run up deficits and inflation. But the President of the Cleveland Federal Reserve Loretta Mester, telling Reuters Wednesday that the Fed should not get too defensive just yet.
>> From a monetary policy point of view, we wanna wait until we sort of get a little more detail. We don't wanna overreact, nor do we wanna overreact to what's happening in the markets. I think the probably likelihood has gone up that we'll get some kinda fiscal policy change but I don't think at this point we can make an assessment of it.
>> The Fed which has worked relentlessly since the financial crisis to boost growth by keeping rates at near zero is already planning to cautiously raise rates. Maybe as soon as December. But those plans might need to accelerate depending on the plans that emerged from the White House. Beyond inflation, another big unknown?
The future for Janet Yellen, the Chair of the Fed, who Trump has called political and said she should be quote, ashamed of her policies.