Chris Christie Accuses Fed of Keeping Rates Low to Support Obama
Governor Chris Christie accused the Federal Reserve of keeping interest rates low for political reasons at the undercard Republican debate on Tuesday.
"When they first cut interest rates during the economic recession and the crisis, that was the right thing to do,"said the two-term New Jersey governor said of the Fed. "But they have kept those rates artificially low for one reason and one reason only -- because they are trying to politically support Obama and his agenda and it's been wrong."
The governor went on to say that the Federal Reserve, which is supposed to be an independent government agency, should be audited, and that Fed officials need to "stop playing politics with the country's money supply." Christie said the low rates have contributed to the nation's growing income inequality by benefiting investors at the expense of the middle class.
Rival candidate Rick Santorum agreed with Christie, saying that the Fed has been "protecting a president that is overtaxing and over regulating" the economy by supporting it with "ridiculously low interest rates."
Christie and Santorum's pledges to audit the Fed aligns with the stance of their fellow Republican presidential candidate Rand Paul. Paul's father, former Congressman Ron Paul, has for years called for the abolition of the Federal Reserve, saying the governing body creates economic booms and busts.
Should a new president seek to overhaul how the Fed is run starting in 2016, it could cause problems and uncertainty during a time that the Fed will likely have already started raising interest rates.
In testimony to Congress this week, Fed Chairman Janet Yellen gave her strongest indication yet the Fed was prepared to begin lifting interest rates from the artificially low levels seen since the Great Recession. October's strong jobs report reinforced the sentiment that the economy is now strong enough to begin raising interest rates.