Donald Trump on Tuesday said interest rates set by the Federal Reserve are inflating the stock market and recommended 401(k) holders to get out of equities, just like he did.
“I did invest and I got out, and it was actually very good timing,” the Republican presidential nominee said in a phone interview with Fox Business. “But I’ve never been a big investor in the stock market.”
“Interest rates are artificially low,” Trump said. “The only reason the stock market is where it is is because you get free money.”
Trump said the market would “go great” if he were elected.
His comments come amid growing tension between him and Republicans concerned that his inflammatory rhetoric — most recently about the parents of a slain American soldier — are hurting the party’s chances against Democrats led by Hillary Clinton in the November elections.
The Fed has kept the benchmark federal funds rate at 0.25 percent to 0.5 percent since a quarter-point increase in December that ended seven years of near-zero rates. Central bankers are taking stock of the economy’s progress in the wake of the U.K.’s vote in June to leave the European Union, as well as the large swing from May’s soft labor report to June’s rebound.
While Chair Janet Yellen has repeatedly said the Fed intends to raise interest rates gradually, market volatility and the unexpected dip in job gains have delayed such plans.