Well, at least 2016 Republican presidential candidate Donald Trump is right about one thing: the stock market is boosted by “artificially low” interest rates. These are sage comments that his opponent, Hillary Clinton, could never really understand.
What’s interesting is that he said in May that he likes low interest rates. Ugh.
Anyway, speaking in an interview with the Fox Business Network on Tuesday, Trump stated that interest rates established by the Federal Reserve, which are near record lows, have artificially boosted the stock market. He then encouraged 401(k) holders to quit the equities market.
The real estate billionaire mogul noted that he invested in the stock market and got out, alluding to his “very good timing.” He did not say when he sold his shares.
“Interest rates are artificially low,” Trump said. “The only reason the stock market is where it is is because you get free money.”
He added that the stock market would “go great” if he were to win the general election in November.
This hasn’t been the first time that he has criticized the United States central bank and its policymakers, namely Fed Chair Janet Yellen.
Late last year, Trump made the case that interest rates have been kept low mainly for political reasons. He explained that rates should have been lowered a long time ago, but noted that if several rate hikes were to happen then they could trigger a recession.
“This is a political thing, keeping these interest rates at this level,” Trump said. “Janet Yellen for political reasons is keeping interest rates so low that the next guy or person who takes over as president could have a real problem.”
The GOP nominee has also said that he would audit the Federal Reserve.
Trump has toned down his inflammatory remarks about the Fed since then. He said this past spring that Yellen is not his enemy and that she hasn’t been doing a bad job. Although he does favor an audit of the Fed, he confirmed that it wouldn’t be a high priority. Trump also said that he likes low rates.
“I’m not a person that thinks Janet Yellen is doing a bad job. I happen to be a low interest rate person, unless inflation rears its ugly head, which could happen at some point. It doesn’t seem like it’s happening any time soon. I don’t think I want to at this point – I mean, number one, she’s got time left,” explained Trump.
“I would rather have a Republican in the position, but I am not the enemy of Janet Yellen. … Look, if interest rates were raised and if the dollar went up more, we’d be doing no business. We’re being killed by other countries devaluing their currencies.”
Who knows what Trump really thinks about the Fed, monetary policy and Yellen? But, for the time being, at least today’s remarks are correct. We shall see what he says tomorrow or the next day about the central bank.
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