Donald Trump thinks the Federal Reserve is keeping interest rates low for reasons that have nothing to do with the economy.
In an interview with Bloomberg TV’s Stephanie Ruhle on Friday morning, the republican presidential candidate said Fed chair Janet Yellen was simply doing President Barack Obama a political favor.
He said: “Janet Yellen for political reasons is keeping interest rates so low that the next guy or person who takes over as president could have a real problem. Keeping these interest rates at this level, Stephanie, this is a political thing, when they get raised, perhaps with the next president, we’re going to see some bad things happen.”
Trump is not sure that Yellen is failing, but he said she seemed to be a “very political” person.
The Fed has not raised its benchmark interest rate for nine years, and it has kept it near zero to support the economy in the wake of the recession.
“I don’t think it’s too late, but I think you’re going to have to do something,” Trump said. “They are trying to put the recession, and it could be a beauty, into the next administration, and that’s not fair.”
Trump acknowledged, however, that as a real-estate developer, he was enjoying the low-interest-rate climate.