Sorry Trump, The Fed Is Not Politically Compromised - Fed Chair Janet YellenBy Kitco News
Wednesday September 21, 2016 15:20
(Kitco News) - Fed Chair Janet Yellen is pushing back on recent criticism from Republican Presidential Candidate Donald Trump that the Fed is politically motivated to keep interest rates low.
During the question-and-answer portion of her press conference, Yellen was asked to comment on Trump’s remarks last week where he accused the Fed of keeping interest rates low to boost equity markets and support President Barrack Obama in his final year in office.
In her response she said that it was Congress that made the Federal Reserve an independent agency to insulate monetary policy from short-term political pressures.
“I can say emphatically that partisan politics play no role in our decisions,” she said. “We do not discuss politics at our meetings and we do not take politics into account in our decisions.”
Yellen added that people may not always agree with the decisions that the central bank makes, but the committee only strives to meet its objectives of full employment in the labor market and price stability with an inflation target of 2%.