Donald Trump would be motivated to replace the Federal Reserve Chair Janet Yellen if he ended up winning the White House notwithstanding supporting the U.S. central bank’s energies to keep the interest rates low, he said.
“I think she has done a serviceable job,” said Trump in an interview, as he moved a step closer to fetching his party’s nominee with a loud win in NY (New York) state nominating contest.
“I do not want to comment on the reappointment, but I’d be more inclined to put other people in.”
Janet Yellen was nominated for top Fed job by the Democratic President Obama and started her 4-year term in Feb. 2014.
In his interview, Donald Trump said that he “absolutely” support the efforts to diminish Fed’s power & permit the Congress to audit it, & backed away from his pledge to erase the 19 trillion dollars in the U.S. debt in 8 years.
The representatives for the Fed however refused to comment on report.
Donald Trump stated that he favored low interest rate environment & that raising the rates would be a blow to U.S. economy. Donald Trump accused Fed in Nov. of keeping the rates low to help President Obama, an assertion that the White House declined.
“The best thing we have going for us is that the interest rates are so low,” said Trump.
“If rates are 3 or 4% or whatever, you start adding that kind of number to an already reasonably crippled economy in terms of what we produce, and that number is a very scary number,” he added.
Fed cut its key immediately lending the rate to almost zero in late 2008 & kept it there for the 7 years to help economy recover from financial crisis. It raised the rates by quarter of percentage point last Dec., its 1st hike in nearly a decade.
Trump’s rival, Ted Cruz of Texas, has said that he’d audit Fed and would move it to rules-based economic policy.
Other presidential candidates, including Sanders also pledged to change the Fed.