Trump says U.S. interest rates must change as Fed weighs rate hike

by Steve Holland | Reuters  |  published on September 6, 2016

Republican presidential nominee Donald Trump, who has previously accused the Federal Reserve of keeping interest rates low to help President Barack Obama, said on Monday that the U.S. central bank has created a “false economy” and that interest rates should change.

“They’re keeping the rates down so that everything else doesn’t go down,” Trump said in response to a reporter’s request to address a potential rate hike by the Federal Reserve in September. “We have a very false economy,” he said.

“At some point the rates are going to have to change,” Trump, who was campaigning in Ohio on Monday, added. “The only thing that is strong is the artificial stock market,” he said.

Fed Chair Janet Yellen said last month that the U.S. central bank was getting closer to raising interest rates, possibly as early as September, saying that the Fed sees the economy as close to meeting its goals of maximum employment and stable prices.

The Fed raised interest rates last December for the first time in nearly a decade, and at that time projected four more hikes in 2016. The Fed later scaled back that projection to two rate hikes this year in the wake of a slowdown in global growth and continued financial market volatility.

  • usatravler

    The truth of the false economy is going to be revealed when republicans get back in charge, then democrats will switch to the blame game while 94 million idle workers have hope of getting jobs. Real unemployment is closer to 20% and not the 5% they are bragging on.

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  • justinwachin

    The Fed’s tinkering with interest rates has put many pension systems in danger of failing. Pension systems are designed to use the interest from their investments to pay the retirees. Thanks to the Fed interest rates are near zero. While the incompetent members of the Federal Reserve can look forward to lavish retirements, the rest of us will face meager retirements because of their mismanagement. Our golden years will turn out to be nothing more than fool’s gold.

    Hopefully Donald Trump will work to clean up the mess created by the past few presidents. We already know that Hillary’s only plan is to use the White House to raise money for the Clinton family slush fund.

  • bobnstuff

    China had to sell their gold reserve, Japan is in recession, forget Greece but by keeping interest rates low we have had steady GDP growth, steady job growth and a stock market that isn’t in free fall. Is what we have done wrong. My retirement as well as a lot of people is tied to the market. Keeping if healthy is very important to our country. I’m not sure Trump understands economics, I know he doesn’t understand how impotent trade is to our economy.

    • Rodney Steward

      And as usual you’re blinded with the grape Kool-Aid of this lying a$$ administration! But every forum has to have a clown, and U seem to always be the chosen one! Trump knows more than you’ll ever know!

    • NM Leon

      The Fed’s “job” is to keep the economy from tanking. Their only ammo is the overnight bank rate.

      Obozo’s policies/regs have held the economy to such anemic growth that the Fed has had to keep it on life support. What happens when there’s another downturn and the Fed has no ammo left because rates are already essentially at zero?

      With a healthy economy the Fed would raise rates and if/when the economy had another downturn they would have the leeway to act.

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