From The Washington Post:
Four months ago, Donald Trump said he’s “not a person that thinks [Federal Reserve Chair] Janet Yellen is doing a bad job” since he himself is a “low interest rate person.” So, of course, at the debate on Monday, he accused Yellen of “being more political than Secretary Clinton” by “keeping the interest rates at this level.”
Now, at this point, it’d almost be more newsworthy if Trump wasn’t contradicting himself. About the only thing he has been consistent about is our alleged need for better trade deals. Everything else seems to be, well, negotiable.
Still, it is worth pointing out that Trump’s latest attack on the Fed doesn’t even make sense on its own terms. Trump, you see, thinks we’re in a “big, fat, ugly bubble” that is “going to come crashing down” the second we “raise interest rates even a little bit.” Which is why he thinks the Fed should … raise interest rates? Huh?
If raising rates is going to send unemployment shooting up and inflation down even further below its 2 percent target, then why would the Fed raise rates? Its job is to keep both of those in the Goldilocks zone where they’re low, but not so low that the economy spirals out of control. According to Trump, it sounds like the only way to do that is to keep interest rates where they are.
That hasn’t stopped him, though, from accusing the Fed of being in President Obama’s pocket. “The day Obama goes off,” Trump said, “and goes out to the golf course for the rest of his life to play golf, when they raise interest rates, you’re going to see some very bad things happen, because the Fed is not doing their job.” Instead, he thinks it’s …