Trump Accuses Fed of Not Raising Rates Because Obama “Doesn’t Want a Bubble Burst” Until He Leaves
It is clear that Janet Yellen is holding her tongue on raising interest rates, and the Federal Reserve is effectively propping up the stock market in the meantime.
The maneuver will only delay the inevitable, but perhaps that is exactly what the powers that be want.
If Donald Trump is right, the Fed is only holding off on rates in order to spare President Obama the stain of another financial crisis during his time in the Oval Office, stalling only to dump a recession-slash-depression on the next president.
Trump has made this idea a center of his recent talking points. According to HNGN:
Republican presidential contender Donald Trump has once again accused the Federal Reserve of keeping interest rates low at the behest of President Barack Obama, who Trump says wants to avoid an economic depression during his administration.
Yellen is "keeping the economy going, barely," Trump told The Hill. "The reason they're keeping the interest rate down is Obama doesn't want to have a recession-slash-depression during his administration."
"They are not raising them because Obama has asked them not to raise them," Trump told Reuters. "He wants to get out of office, because we're in a bubble, and when those rates are raised, a lot of bad things are going to happen."
He added: "Janet Yellen is highly political and she's not raising rates for a very specific reason: because Obama told her not to because he wants to be out playing golf in a year from now and he wants to be doing other things and he doesn't want to see a big bubble burst during his administration."