Will Trump drop his grumbling about Fed and favour low rates?
WASHINGTON — In the chaotic windup of the presidential race, Donald Trump complained that Janet Yellen’s Federal Reserve was being “obviously political” in keeping interest rates ultra-low. He spoke of a “big fat ugly bubble” fueled by the Fed. And he grumbled that savers were getting “creamed” by low rates.
Since then, the Fed has raised rates, and more hikes are expected. But now, some Fed watchers wonder if Trump will soon discover something many of his White House predecessors found:
Low rates can be a president’s best friend.
That may be especially true when you have an economic plan as audacious as what Trump has pledged: A much faster economy, with many more exports, fewer imports, a rejuvenated manufacturing sector and 25 million more jobs over 10 years.