Trump Slams Yellen: The Fed Has Created A "Stock Bubble" And "A False Economy" To Boost Obama

Tyler Durden's picture

One month ago, Donald Trump urged his followers to sell stocks, warning of "very scary scenarios" for investors, and accused the Fed of setting the stage for the next market crash when he said that “interest rates are artificially low” during a phone interview with Fox Business. "The only reason the stock market is where it is is because you get free money."

Earlier today, speaking to a reporter traveling on his plane who asked Trump about a potential rate hike by the Fed in September, Trump took his vendetta to the next level, saying that the Fed is "keeping the rates artificially low so the economy doesn't go down so that Obama can say that he did a good job. They're keeping the rates artificially low so that Obama can go out and play golf in January and say that he did a good job. It's a very false economy. We have a bad economy, everybody understands that but it's a false economy. The only reason the rates are low is so that he can leave office and he can say, 'See I told you.'"

He then lashed out at Yellen, whom he accused of having a political mandate when conducting monetary policy: "So far, I think she's done a political job. You understand that."

On whether we can have a rate hike in September: "Well, the only thing that's strong is the artificial stock market. That's only strong because it's free money because the rates are so low. It's an artificial market. It's a bubble. So the only thing that's strong is the artificial market that they're created until January. It's so artificial because they have free money... It's all free money. When rates are low like this it's hard not to have a good stock market."

His conclusion: "At some point the rates are going to have to change."

Indeed they will, and that's precisely what almost every bank, from Goldman yesterday to Citi today, and many others inbetween, have been warning about in recent months.

Until recently, Trump's latest anti-Fed outburst would have been swept under the rug as just another example of the deranged ramblings of an anti-Fed conspiracy theorist (trust us, we've been there). However, considering the spike in anti-Fed commentary in recent weeks coming from prominent, and established institutional sellside analysts all the way to the WSJ, it may be that Trump was once again simply saying what everyone else thought but dared not mention.

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cognitive dissident's picture

DJT knows the score just as we do, and he is politically 'front-running' a serious swoon in SEPT just like the V. Squid... got VIX?

de3de8's picture

It's about time Donald! Wish you started saying this earlier, much earlier.

blue51's picture

One of his Aides might want to show him the comments on the FEDs Facebook site.

WTFRLY's picture

B/c the 100 year history of the Fed hasn't been to do the same things? The Joo World Order has been embedded into America's "economy" for decades.

jcaz's picture

LOL- that's funny.  Even the YouTube caption says "100 people"-  yeah, that's quite the turnout....

She prolly had to give half of them $50 again......

Pinto Currency's picture


Indeed DJT.

Rates are going to go higher with a bang - see Michael Oliver's work on bonds, commodities and gold/silver:

The fake bond market and fake stock market are going to cave.

scm's picture

"Anti" fed. I didn't hear him so much as say he was going to audit the fed ,never mind end the fed,

"Anti" establishment "outsider" is laughable.

Omerta's picture

I guess you don't get around much- too busy spouting the same uninformed garbage here. Yeah, I downvoted you again...


scm's picture

THUMP says everything once. He has no principals.
I have yet to hear him say a thing remote to that since then.
Like I said, he should be talking about ENDING THE FED, if he's serious about fixing shit.
Hint: HES NOT.

dark pools of soros's picture

I've yet to give a shit what you think

scm's picture

That's ok. Continue on lemming.

HenryKissingerChurchill's picture

this is enough to get a heart attack in the tub

Mountainview's picture

Trumpm makes progress on the matter.

Omerta's picture

I guess you don't get around much- too busy spouting the same uninformed garbage here. Yeah, I downvoted you again...


bleu's picture
bleu (not verified) Omerta Sep 5, 2016 9:34 PM

The false economy is good for those who control the Fed.

BurningFuld's picture

Na forget the $50 per person. The secret to a really great rally is FREE BEER!

reallyseriousstuffnews's picture

Discounted pictures with the hag, only 9k for the little people.

The Real Tony's picture

Janet is about as popular as Charlie Zelenoff. Charlie also paid boxers 50 bucks apiece to take a dive in the ring.

blue51's picture

I am referring to the cynical and anti-FED comments. Some are not only funny , but detail the corrupt and Unconstitutional aspects and doings of the FED.

HenryKissingerChurchill's picture

"The Joo World Order has been embedded into America's "economy" for decades."

The Joo world order has been embeded into the world economy for centuries.

That is why everybody luvs them.

de3de8's picture

That's likely why he has gone there with campaign

Lonesome Crow's picture



IF the ONLY reason rates are so low is that the economy does not go down, then what is the purpose of counterfeiting?


Principles, Aristo-Trump, principles...

masisishot's picture

There are three classes of intellects: one which comprehends by itself, another which appreciates what others comprehend and a third which neither comprehends by itself nor by the showing of others. The first is the most excellent, the second good and the third is fucking useless. Most of the comments here fall into the third category as I am sure most of the idiots that bite at the trump or hillary articles. A solid case can be made for both of them being completely unfit for office yet morons on here will refuse to vote for a third party or try to actually change anything.

With regards to this article, the fed has propped up the govt for the last 15 years, it also played a major role in the lead up to the crisis of 2007. So while Mr Orange Mctavish may have a point use your brain and be honest about the actual nature of what has happened over the past 15 years. Ask yourself, being the morally bankrupt buffoon that he is, do you really think that he would audit the fed or use it as his own printing press as all have done in the past? If you say yes then you are an absolute idiot.

Al Bondiga's picture

"Mr. Orange McTavish!" Fooking brilliant!
Yeah, anybody who buys this clown's schtick is a moron.

Nemontel's picture

He is a billionare and has many friends in the Wall Street Elite. Naturally, he knows exactly what the Fed is doing but he simply cant criticize leading members of the Elite too openly, hes not powerful enough for that.

css1971's picture

There must be oh 100 people there. Could even be 150. She's really pulling them.

Squid-puppets a-go-go's picture

so she coughed, like, one ounce of blood for every supporter. Nice round figure

Archibald Buttle's picture

how ironic would it be if she truly suffered from consumption.

Squid-puppets a-go-go's picture

pfff  lol you deserved more than my one palty upvote

yogibear's picture

LOL, rally of 100 supporters. What did she pay them?

Turin Turambar's picture

VIX is nothing more than a lever used by the central banks to prop the market up.  It's 100% manipulated.  You might as well flush your money down the toilet if you want to buy VIX.  

jcaz's picture

Yup- if you buy the VIX,  you're just handing the Fed something that they can sell, and they will.

LowerSlowerDelaware_LSD's picture
LowerSlowerDelaware_LSD (not verified) jcaz Sep 5, 2016 4:18 PM

Then short the VIX?

jcaz's picture

That's what the Fed does-  with your money.

LibertarianMenace's picture

Gettin' warm there Donny, but not hot. Who are the owners of this Fed you speak so lowly of?

HenryKissingerChurchill's picture

some select elite families we all would like to marry with, or at least party with

LawsofPhysics's picture

Gee, thanks Captain obvious.

What do your Rothschild buddies think of that?

Lonesome Crow's picture

He is wrong.

He is identifying a symptom and not the cause...

Berspankme's picture

are you saying excessive debt requires low interest rates? Or do low interest rates facilitate excessive debt?

LawsofPhysics's picture

Irrelevant, what solution does he propose?

< crickets >

Lonesome Crow's picture



He is not there yet, and rightfully so.

Would he were, if when turned to what, oh how he could!


< chirp, chirp, a derp >

rejected's picture

You don't have to provide a solution to be right.

sessinpo's picture

Then what is the purpose of putting him in office? Aren't many here expecting him to provide a soluion of sorts if elected? Even if he is right, which he is, what if his solution was something you didn't expect or like, something that made it even worse?

Perhaps this is like obamacare where we haveto pass it first to see what is in it.

rbg81's picture

He is almost right. The Fed is keeping rates low not just for Obama, but to keep the entire Entitlement State afloat.  If 10YR UST rates ever go over 5%, the Government has to either do a massive tax increase or stop the EBT cards.  If they do the former, the Government falls.  If they do the latter, the cities burn.  It's a Hobson's choice.  If they stay thhe course, the only people who get screwed over are citizen savers, who are mostly elderly tend NOT to riot.

der folk's picture

Over 5. Maybe closer 3.