Date
22 September 2017
Republican presidential contender Donald Trump speaks at a news conference in New York on Tuesday. Photo: Reuters
Republican presidential contender Donald Trump speaks at a news conference in New York on Tuesday. Photo: Reuters

Trump accuses Fed of keeping rates low to help Obama

US Republican presidential candidate Donald Trump has accused the Federal Reserve of keeping interest rates low at the behest of Barack Obama, the current occupant of the White House.

Speaking at a news conference Tuesday in New York, Trump also called Fed Chair Janet Yellen “highly political”, Reuters reported.

The central bank needs to raise interest rates, but it is not doing so due to “political reasons”, he said.

“They are not raising them because Obama has asked them not to raise them,” Trump said, echoing similar comments he made in interviews last month.

“He wants to get out of office, because we’re in a bubble, and when those rates are raised, a lot of bad things are going to happen.”

Trump added: “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 doesn’t want to see a big bubble burst during his administration.”

White House spokesman Josh Earnest dismissed Trump’s comments when asked about them at a news conference later on Tuesday.

The administration “goes to great lengths” to ensure that the Fed can make monetary policies that are in the best interests of the country and the economy, Earnest said.

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