Well at least one of the candidates vying for the Republican or Democratic presidential nomination appears to have a reasonable grasp of current economic reality and the complicity of the Federal Reserve in exacerbating an impending financial disaster. In an interview with The Hill, Donald Trump blasted the 2010 Dodd-Frank Wall Street reform law as a “disaster.” Trump noted that despite Dodd-Frank “we’re in a bubble right now anyway.” He pointed to social media companies that have issued IPOs worth “billions” but “haven’t even made 10 cents.” Trump also showed insight into the political machinations of the Fed, accusing Fed Chairwoman Janet Yellen of resisting an increase in interest rates to protect the incumbent administration from leaving office during a recession. In Trump’s words:
“She’s keeping the economy going, barely. The reason they’re keeping the interest rate down is Obama doesn’t want to have a recession-slash-depression during his administration.”
Such a plain-spoken indictment of the Fed from a politician is always welcome, regardless of its source.
