Mises Wire

Home | Wire | Donald's Remarks on the Bubble and the Fed Are on the Money

Donald's Remarks on the Bubble and the Fed Are on the Money

  • 5440393641_2892f718d7_z.jpg
0 Views

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.   

Joseph Salerno is academic vice president of the Mises Institute, professor emeritus of economics at Pace University, and editor of the Quarterly Journal of Austrian Economics.

Add Comment

Shield icon wire