The Republican nominee called on America’s Central Bank to raise interest rates after providing historically cheap money for nearly eight years threatening the safety of the US economy.
Republican presidential nominee Donald Trump weighed in on the Federal Reserve debate on hiking interest rates before Election Day blasting the Central Bank for masking the failures of President Obama’s “false economy” which he argues has not truly recovered since the 2008 crash. US President Barack Obama (L) sits with Chinese President Xi Jinxing during a bilateral meeting ahead of the opening of the UN conference on climate change COP21 (File) © AFP 2016/ JIM WATSON Obama Crashes G20 by Warning Beijing of ‘Consequences’ in the South China Sea “They’re keeping the rates down so that everything else doesn’t go down,” Trump told reporters when asked whether the Federal Reserve should increase interest rates. “We have a very false economy.” “At some point the rates are going to have to change,” Trump explained while campaigning in Ohio on Monday. “The only thing that is strong is the artificial stock market.” A number of leading economists agree with the bombastic billionaire reality television star turned political sensation arguing that the Central Bank has exceeded its mandate in artificially propping up the US economy by maintaining historically low interest rates for the entirety of President Obama’s term. Philippine presidential race front-runner Davao city mayor Rodrigo Duterte gestures during his final campaign rally in Manila, Philippines on Saturday, May 7, 2016. © AP Photo/ Aaron Favila Philippines Leader Duterte Blasts Obama’s Meddling, Calls Him a ‘Son of a B—-‘ Economists claim that low interest rates, which leads to artificially low borrowing costs, has the effect of stripping the economy of its risk management mechanism as businesses are able to fill financial shortfalls simply by borrowing more money at extraordinarily low interest rates. Others wonder if the flow of cheap money maintained by the Fed’s bond buying program – although some erroneously liken this to the Central Bank printing more money – also contributes to economic inequality. These concerns seem to match the realities of the American economy as the stock market surges and the wealthiest one percent report ever increasing incomes, but wages have remained stagnant or have fallen for most working Americans while the workforce participation rate continues to lag well behind pre-recession levels as many workers have just given up. Putin and Obama at G20 Summit in Hangzhou © Sputnik/ Obama Threatens Cyber War on Russia Turning G20 Summit Into a Political Event Donald Trump blasted Federal Reserve Chairwoman Janet Yellen calling her tenure as the head of the Central Bank “highly political” and said that while he believed that an interest rate hike is necessary to restore balance to the American economy and prevent future calamity in the financial markets, he did not expect that the Federal Reserve would raise rates in September due to “political reasons.”
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