By Tim Hains September 7, 2016
GOP presidential candidate Donald Trump said this week that the Federal Reserve is keeping interest rates low to keep the economy alfloat. “They’re keeping the rates artificially low so that Obama can go out and play golf after January and say that he did a good job,” Trump said Tuesday.
Former Congressman and longtime critic of Fed policies Ron Paul said Trump’s view was much closer to his than Hillary Clinton’s in an interview with Fox News Channel’s Neil Cavuto on Wednesday. “I find Hillary astounding,” Paul said. “For her to say that we shouldn’t comment on the Fed — it is off limits, don’t talk about it.”
“I think the members of the secret society of the Federal Reserve will love Hillary,” Paul said. “Because you’re not allowed to say anything. And yet, as you know, I consider the Federal Reserve and the monetizing of debt as being very important. Because I think the next step that we have, not only the desire to know what the Fed is doing –And Donald Trump wants to audit the Fed– I think the connection has to be known that the deficit can dealt with by the Federal Reserve, they just have to be prohibited from monetizing debt.”
“When I was in Congress, the Chairman of the Federal Reserve always blamed the Congress for spending too much money, but the Fed accomodates them by doing what? Keeping interest rates low!”
Ron Paul has not endorsed Trump for president saying that all three parties represent bad choices. He jokingly said earlier this year that he is waiting for Trump to become a libertarian before endorsing him.
Donald Trump Says the Federal Reserve Has Created a ‘False Economy’
September 6, 2016
By propping up the stock market with low interest rates.
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.
Trump, during the primary campaign, as he took on 16 Republican rivals, had called Yellen’s tenure “highly political” and said the Fed should raise interest rates but would not do so for “political reasons.”
The Fed has been a target of some conservative critics in the U.S. Congress, who say the bank risked sparking inflation with its easy monetary policies in response to the global financial crisis.
Fed officials say their independence is critical to making sound policy decisions.