German View

Donald Trump Has a Point

Fed Chair Janet Yellen has been one of the many targets of Donald Trump's ire. Source: AP
  • Why it matters

    Why it matters

    Conservatives in Germany and the United States are questioning the policies and even the independence of central banks like the Federal Reserve and the European Central Bank.

  • Facts


    • The Federal Reserve and the European Central Bank have kept interest rates at record lows ever since the 2008 financial crisis.
    • U.S. Republicans and some German politicians have slammed the two central banks for keeping rates too low for too long, creating new risks for the financial system.
    • Germany’s ordoliberal economic tradition has some followers in the United States. A move to force the Fed to follow specific monetary rules stems from that tradition.
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If Donald Trump were to take the White House on Tuesday, there’s one person who already knows they won’t have a job much longer: Federal Reserve Chair Janet Yellen.

The Republican candidate and former reality show host has said he will “fire” Ms. Yellen the first chance he gets. He’s accused the U.S. central bank of acting politically – of being in league with President Barack Obama and helping him artificially prop up the world’s largest economy.

Mr. Trump’s personal, frontal assault on the head of an independent central bank was one of the many unprecedented moments in this unusual election campaign. And yet, it’s one of the few issues where Mr. Trump’s Republicans might actually get some understanding from Germany.

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