Love him or hate him, but Donald Trump has a legitimate point here. Trump: Janet Yellen Keeping Interest Rates Low as Political Favor to Obama
“This is a political thing, keeping these interest rates at this level,” Trump, the billionaire Republican presidential candidate, said in a Wednesday interview with Bloomberg Television’s Stephanie Ruhle. “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. Trump argued, could be “a recession or worse.” On the other hand, Trump faulted the Federal Reserve for not having acted sooner. “Yellen is keeping rates too low, too long,” Trump said.
Dead on.
First, nearly everyone (Icahn, Rogers, Faber, yours truly, etc….) agrees, the FED should have raised interest rates a long time ago. As far back as 2011. It is too late now and that has been outlined on this blog many times before. You can even classify it as “Economic Negligence”.
Second, an incumbent will always have a difficult time winning a re-election if the Economy tanks on their watch. “It’s the economy stupid.” And since Mr. Obama has been very vocal in attributing the current “Economic Miracle” to his brilliant advances in Ponzi Finance, it would make sense that the Democrats would win/lose the election based on what the stock market and/or the economy do over the next 12 months.
Luckily, for Mr. Trump, the market might resolve this little conundrum in the Republican favor and before the 2016 campaign kicks into high gear.
