Janet Yellen, Former Treasury Secretary and Fed Chair between 2014-2018, has expressed her disapproval of President Donald Trump‘s economic policies, attributing them to significant economic damage.

What Happened: Yellen, who served under former President Joe Biden, stated that Trump “has taken a wrecking ball” to the economy. She emphasized that Trump inherited a robust economy with low unemployment and a strong record of job creation, in an interview with CNN.

Yellen further stated that Trump’s policies are the “worst self-inflicted wound” imposed on a well-functioning economy. She also estimated that Trump’s tariffs could cost American households $4000 a year.

The Former Treasury Secretary said she could not think of a ‘more devasting economic agenda’ citing the effects of Trump’s tariffs as well as Elon Musk’s DOGE cuts in the federal agencies.

Yellen’s criticism was mainly directed at Trump’s tariff policies, which she believes triggered a downturn in the stock markets late last week and early this week. Despite a brief market recovery on Wednesday, when Trump increased tariffs on China but paused his country-specific tariffs against all other trading partners for 90 days, the Dow Jones was significantly down again on Thursday.

When asked by CNN’s Bianna Golodryga to grade Trump’s handling of the economy, Yellen, who is back to being a professor, responded, “I’m afraid I could not give it a passing grade.”

SEE ALSO: Xi Jinping Steering Clear Of Trump Negotiations To Avoid Political Backlash At Home, Says Expert: China ‘Doesn’t Have Any Cards In This’ Game

Why It Matters: Trump’s tariff policies have been a contentious issue and people are divided over its long-term impact. Former Vice President Mike Pence labeled Trump’s tariff moves as a “misstep,” citing potential economic harm to working families.

Despite this, GOP leaders like Mike Johnson and John Thune stood by Trump, earlier this month, giving the administration time to stabilize the economic situation.

While Trump announced a 90-day pause on the tariffs while keeping the rate at 10%, Yellen doesn’t think it will save the day for the U.S. economy. She said that even if the tariffs never go into effect, the U.S. and global economies have suffered a ‘huge protectionist shock’.

• READ MORE: Howard Lutnick Defends Trump Tariffs Saying ‘Everybody Needs Our Economy’ — Especially China

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.