As the U.S. Stock Market keeps edging up and is predicted to reach historic new highs, the bubble will soon burst and plunge our country in to a recession, unless interest rates are increased, predicts Republican presidential candidate Donald Trump.
Trump told The Hill that Federal Reserve Chairwoman Janet Yellen is keeping interest rates low in order to shield President Obama from having to leave office during a recession.
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.
The Federal Reserve has kept its benchmark rate, the rate banks trade with each other, close to zero for almost seven years. During those seven years, U.S. stocks have nearly tripled from the 2008 financial crisis low.
Trump further commented:
You know who gets hurt the most? People who practice the American dream and did what should have been the right way — the people that went through 40 years of their life and saved a hundred dollars every week [in the bank].
He paused, shaking his head before adding:
They worked all their lives to save and now what happens is they’re being forced into an inflated stock market and at some point they’ll get wiped out.
(h/t The Hill)