Janet Yellen responses firmly to Trump’s criticism of Fed

Republican Presidential nominee Donald Trump, for some time now, has been accusing the U.S. Federal Reserve of creating a false economy with lower interest rates. Trump has said that Chair Yellen should be ashamed of what she has done to the country. He has called the Fed very political.

Last night, at the policy meeting of the U.S. Federal Reserve chair Yellen had a chance to respond to it and she did. She stressed the fact that Fed is independent of all politics and politics do not interfere with the decisions Fed take. She added that policymakers do not discuss politics in the meeting and do not take politics into account while making the decisions and then she went on defend Fed’s policy moves. Here is exactly what she said,

"Well, I think Congress very wisely established the Federal Reserve as an independent agency. In order to insulate monetary policy from short-term political pressures and I can say, emphatically that partisan politics plays no role in our decisions about the appropriate stance of monetary policy……We do not discuss politics at our meetings and we do not take politics into account in our decisions. As I said, we're generally pleased with the progress of the economy and the decision not to raise rates today and to wait for some further evidence, we're continuing on this course, is largely based on the judgment that we're not seeing evidence that the economy is overheating...."