Trump Claims Yellen Is Holding Rates Low to Aid Obama

Republican presidential nominee Donald Trump ratcheted up his criticism of the Federal Reserve and Chairwoman Janet Yellen on Monday, saying the central bank is keeping rates low to help President Barack Obama.

Mr. Trump, presumably speaking of Ms. Yellen, said interest rates have been kept low “because she’s obviously political and doing what Obama wants her to do.” Mr. Trump, in an interview on CNBC, added “what they [the Fed] are doing is, I believe, it’s a false market. Money is essentially free.”

Ms. Yellen, he said, “should be ashamed of herself.”

His comments also marked the latest swing in Mr. Trump’s views on monetary policy and the central bank chief, for whom he said he had “great respect” in an interview with The Wall Street Journal four months ago.

Republicans and Democrats have taken aim at the Fed in recent years over its handling of the financial crisis and its easy-money policies.

Updated 9/21/16:

Janet Yellen Says Donald Trump Can’t Bully the Fed. During a press conference with reporters on Wednesday—following the Federal Open Market Committe’s (FOMC) decision not to raise interest rates—Yellen vigorously fought back against insinuations by the Donald Trump campaign that the Fed is politically motivated. “I can say emphatically that partisan politics plays no role in our decisions” whether or not to raise interest rates. “We do not discuss politics at our meetings.”

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