Interest Rates At Zero+ Fed Favor For Obama And Democrats

Donald Trump charges that Fed Chairwoman Janet Yellen’s decision to delay hiking interest rates is motivated by politics.

“This is a political thing, keeping these interest rates at this level,” Donald Trump, the billionaire Republican presidential candidate, said in a TV interview. “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.”

That problem spurred by raising rates, Mr. Trump argued, could be “a recession or worse.”

On the other hand, Mr. Trump faulted the Federal for not having acted sooner. “Yellen is keeping rates too low, too long,” he said.

The GOP front-runner also took aim at corporate inversions, which he cited as a major factor contributing to what he sees as a stagnating US economy. Inversions will accelerate as more companies leave the US for lower taxes and because “they cannot get the money” back into the US, Mr. Trump said.

Donald Trump’s tax plan includes a lower business income tax  rate of 15%, which is aimed at making “corporate inversions unnecessary,” according to his website. His plan would also impose a lower tax rate to encourage corporations to bring cash held overseas back to the US

Businesses “don’t have the loyalty to the United States that they used to have,” said Mr. Trump.

Donald Trump also said Wall Street banks are criticized for paying executives too much because “they are very bad at public relations.” Instead of settling lawsuits with regulators, they should prolong the legal fight, he said.

“I don’t want to use Jamie Dimon as an example, because he’s a good man,” he added. “But these guys should fight harder. They get sued and they settle.”

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Paul Ebeling

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