Republican presidential candidate Donald trump said in an interview with CNBC that the Federal reserve system (FRS) maintains a low discount rate taking into account the wishes of President Barack Obama. He argues that therefore, the regulator has set up a “fake stock market”.
Trump said that rates remain at a low level, to show how well Obama has done with their responsibilities. “Any increase will generally be very small, because they want the market continued to grow, and when Obama will leave and let the new guy… to increase interest rates …. and see what happens with the stock market”, — explained the candidate of the supposed motives of the current administration.
He added that he doubted that interest rates will change while Obama remains in power because he wants to leave and play Golf the rest of your life”. The presidential candidate said that as a businessman involved in real estate he likes low rate, but for the sake of the people it should be raised.
In response to accusations trump the President of the Federal reserve Bank of Minneapolis Neil Kashkari said on CNBC that his claims have no basis in the truth.
A week ago trump has already criticised the policy of the fed, calling the US economy “phony” and withheld from the recession, low interest rates.
Next week will be held the next fed meeting, which will discuss the level of interest rates. According to Reuters, the President of the Federal reserve Bank of Atlanta Dennis Lockhart said on Monday that the current economic situation called for a “serious discussion” about growth rates.
In December 2015 the fed for the first time in 10 years, raised its key interest rate to 0.25–0.5 percent. The increase was 0.25 percentage points. Since then, the rate remains unchanged.