Federal Reserve

Despite campaign attacks, Trump could turn out to be Yellen's 'best friend,' strategist argues

Strategist: Trump could become the Fed's best friend

President-elect Donald Trump's spending plans may give the Federal Reserve the help it's needed for years, Strategas Research Partners' Jason Trennert told CNBC on Thursday.

Economists have long said stimulative fiscal policies are needed in conjunction with monetary measures in order to jumpstart the economy and get the Fed off a crisis bias.

"The irony is, I think, Donald Trump could the best friend for the Fed," chief investment strategist Trennert, a Trump supporter, said on "Squawk Box," one day after the Fed increased interest rates for the second time in a decade.

Trump's fiscal stimulus could actually give Fed Chair Janet Yellen and her colleagues "coverage to normalize interest rates, finally," he said. "You have enough growth that you can actually get back to some sort of normal neutral fed funds rate."

After their two-day December meeting, Fed policymakers on Wednesday also projected three increases next year instead two, while Yellen told reporters later that she does not "bless" or criticize Trump policies.

Trump repeated attacked Yellen during the presidential campaign, accusing her of being politically motivated to keep rates so low for so long to burnish President Barack Obama's legacy by providing continued stimulus to the economy.