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NEW YORK (TheStreet) -- President Obama wants interest rates low and the Federal Reserve won't raise rates until after the next president takes office in January 2017, Republican presidential candidate Donald Trump said on CNBC's "Squawk Box" on Monday morning.
"The interest rates are kept down by President Obama. I have no doubt that that's the reason they are being kept down," Trump said.
Fed chair Janet Yellen is "obviously political" and will keep interest rates at 0% at the agency's September meeting because that's what Obama wants, he asserted. "Don't forget I called Brexit. I did a lot of calling," he reminded CNBC's Joe Kernen.
The central bank will continue to keep interest rates low "even longer" and any increase will be "a very, very small increase" because it doesn't want to raise rates until the new president takes office in January 2017, Trump predicted.
But the Fed needs to make a move because it's creating a "false market because money is essentially free," he said.
"I love low interest rates but for the country, something has to happen. I don't think it's going to happen very much because [Obama] wants to go out. He wants to play golf for the rest of his life, and he doesn't care what's going to happen after January," Trump said.
The people who did everything right are the people who are being hurt by the current low interest rates, Trump added.
"And you know the people who were hurt the worst are people that saved their money all their lives and thought they were going to live off their interest. And those people are getting just absolutely creamed," he said.