At a press conference at Trump Tower in New York City on Tuesday, 2016 Republican presidential candidate Donald Trump said interest rates should be raised and accused Federal Reserve Chair Janet Yellen of politicizing monetary policy.
When a reporter asked Trump whether he believes that the Federal Reserve should raise interest rates from long-held record-low levels, Trump replied:
[pull_quote_center]The question is should the Fed raise rates? They are not raising them because Obama has asked them not to raise them. In my opinion, he wants to get out of office, because we are in a bubble and when those rates are raised, a lot of bad things are going to happen or potentially going to happen. And in my opinion Janet Yellen is highly political and she’s not raising rates for a very specific reason: because Obama told her not to because he wants to be out playing golf in a year from now and he wants to be doing other things and he doesn’t want to see a big bubble burst during his administration.[/pull_quote_center]
He added, “Janet Yellen should have raised the rates. She’s not doing it because the Obama administration and the president doesn’t want her to. And if she does it, you see what happens every time there’s even a thought of raising them just a little bit…”
Reuters reported that Trump then lamented what he described as the U.S. dollar’s lack of competitiveness and said, “If you look at the (currency) devaluations of China, of Japan, of many, many different countries, they’re making it impossible for our companies to compete with them because we don’t have leaders that know how to say to China, ‘Don’t do that. Don’t do that, because if you do that, we’re going to put a big fat tax on you.’”
White House press secretary Josh Earnest brushed off Trump’s comments in a Tuesday press conference and said that the Obama administration “goes to great lengths” to enable the Fed to set monetary policies that benefit the U.S. economy.
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