Originally appeared at DWN, translated by Karin exclusively for SouthFront
Donald Trump accuses the US Federal Reserve (Fed) of a misguided monetary policy. The low interest rates have led to an artificial market and inflated share prices. This is supposed to improve the legacy of the Obama administration. Hillary Clinton defended the Fed.
The Republican presidential candidate Donald Trump sharply criticized the US Federal Reserve. They are holding the key interest rate deliberately low, in order to distract from the really poor state of the US economy.
The Fed “is keeping interest rates artificially low, so that the economy does not crash and Obama can say he has done a good job. You keep interest rates artificially low, so Obama can play golf in January and can boast about having done a good job. This is a false economy. Our economy is in a crisis, everyone knows that, but it’s a very false economy,” Trump told to the financial blog Zerohedge according to a reporter.
Fed chief Janet Yellen doesn’t act like a central banker, but as a politician. “So far, she has done political work. They all know that. ”
On the question of whether it will come in September to an increase in interest rates, said Trump: “Well, the only thing that is currently strong, is the artificial stock market. This just seems to be good, because the money is free, because interest rates are so low. It is an artificially inflated stock market. It is a bubble. When interest rates are low, it is very easy to have a good stock market. ”
In the past, Trump already had pointed to an imminent collapse of the US stock markets and the onset of a recession. Very soon, some “very scary scenarios” would come for investors.
Hillary Clinton promptly took side with the Fed on the dispute. “If someone is a candidate for president or if he is US president, he should not comment on the decisions of the Fed,” Clinton said on Tuesday, according to Reuters. “Words do have consequences. Words move markets. Words can be misinterpreted, “she added.
Trump had accused on Monday the Fed to keep interest rates low in order to prevent a collapse of the US economy. “You keep interest rates low so not everything else will plummet,” he replied to a journalist’s question on a possible rate hike in September. “At the moment, only the artificial stock market is strong.” Eventually, the interest rate will need to be changed.