ABC/ Ida Mae Astute(NEW YORK) — Donald Trump on Monday accused the Federal Reserve of not being independent and suggested interest rates were low because it was what President Obama wanted.
In an interview with CNBC, the Republican presidential nominee warned the stock market could go “way down” when the Fed decides on another rate hike, and said he had “no doubt” rates were still low because of the president and Fed Chair Janet Yellen.
“She’s [Yellen] keeping them artificially low to get Obama retired,” he told CNBC. “Watch what’s gonna happen afterwards. I think it’s very political and to a certain extent I think she should be ashamed of herself.”
Trump added that the U.S. central bank “is obviously not independent,” and hit critic Sen. Elizabeth Warren (D-Mass.) for the first time in days, referring to her as “Pocahontas.”
“What I would want to do is have a policy — I wouldn’t go by what Pocahontas wants you to do, because her agenda is obvious, and she’s a disaster and she’s one of the least effective senators in the United States Senate, and nobody understands that, but she’s done nothing,” Trump said. “I would want to have a policy where we can start to at least gently reduce debt and get things under control, because right now it’s not under control.”
Trump’s comments come as investors await a decision from the Fed on the next rate hike after much speculation one could be coming this month. The last interest rate raise was in December, the first since the country’s financial crisis. The Federal Open Market Committee will meet next week.
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