Since the economic crisis in 2008, the Federal Reserve Bank has concentrated on keeping interest rates low to encourage lending and help economic growth. For Donald Trump, this practice is suspicious.
Donald Trump on Monday accused Federal Reserve Chairwoman Janet Yellen of being a political figure who does whatever President Barack Obama wants her to.
“… she’s obviously political and she’s doing what Obama wants her to do,” Trump told CNBC’s “Squawk Box” in a telephone interview. “And I know that’s not supposed to be the way it is, but that’s why it’s low. Because as soon as they go up, your stock market’s gonna go way down, most likely or possibly.”
Or less likely, or possibly not, or definitely never. Prediction is so much easier when you put your name next to every option.
“And don’t forget, I called Brexit. I did a lot of calling … “
We won’t forget. But Trump did apparently forget one thing: Ms. Yellen raised the rates last year, which was the first time it had been raised since 2006. And Yellen only became chair in 2014. Before that, the Fed was chaired by Bush appointee Ben Bernanke. So if Trump is looking for someone to blame, how about Bernanke, who didn’t raise the rates at all over his tenure, rather than Yellen, who doubled the rate in her first year? Of course, facts don’t stand in the way of Donald Trump when he’s making wild claims.
That’s keeping this whole thing apolitical, all right.