Trump says Fed rate policy influenced by Obama

Trump says Fed rate policy influenced by Obama

"She's obviously political and doing what Obama wants her to do", Trump said. "I love low interest rates, but for the country, something has to happen".

"Janet Yellen should have raised the rates", Trump told reporters. Well, the real rate of interest on AAA corporate bonds bounces around a bit, but at the moment yields are running about 1 percent. And while it's true that the central bank has seemingly been anxious about triggering market turmoil with a hasty rate increase, that's because monetary policymakers generally don't like sowing panic among investors-not because they're fretting over the president's tee time.

"Any increase at all will be a very, very small increase because they want to keep the market up so Mr Obama goes out and let the new guy. raise interest rates. and watch what happens in the stock market", Mr Trump said.

Granted, Trump also expressed concern about the way low rates disadvantage savers.

Murmurs of the Fed working on an incumbent's behalf are common; since most efforts to boost the economy boost the incumbent, false positives are easy to find.

Meanwhile, speaking separately Monday afternoon, Federal Reserve Governor Lael Brainard offered fuel to Trump's Fed conspiracy fire by saying that a interest rate hike was not imminent. I'm part of the deliberations. "She's obviously political", he said. "We look at the economic data, and everyone around the table - we may have different perspectives on policy - but everyone around the table is committed to achieving our dual mandate".

Trump added that the US central bank "is obviously not independent", and hit critic Sen.

In the interview, Trump also said that Senator Elizabeth Warren is wrong in wanting to keep interest rates low, calling her "the least effective" member of the Senate. It's worth noting that the market tends to shake at the prospect of higher interest rates, which naturally make the cost of borrowing money more expensive. I think it's time to raise rates. "I think it's very political".

"Well, I used to think that the Justice Department worked independently, also, and I used to think that the Federal Bureau of Investigation was independent, also, but that's obviously not possible because Hillary Clinton is guilty as hell, and everybody knows it", he said. "It's obvious", Trump told CNBC. Some think the Fed will raise rates numerous times next year too. And the Fed is obviously not independent. He said the long period of low rates had most hurt retirement investors who had expected to draw on savings interest. He noted that low interest-rate policies are not exclusive to the United States and that they have been adopted in reaction to the late-2000s economic crisis among several advanced economies.

With the Federal Reserve powerless to do much more than it already is, the best route to faster US economic growth is through non-monetary policy approaches such as immigration and tax reform, a top Fed official argued on Monday.

This year, no increases have been seen, in the face of fairly slow U.S. growth and worldwide economic tension following the UK Brexit vote.

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