The U.S. Federal Reserve has painted itself into a corner when it comes to interest rates and is being affected by rhetoric from the Republican presidential candidate Donald Trump, according to Michael Harris, head of research at investment banking firm Renaissance Capital.
"(Fed Chair Janet Yellen) says that she won't go into politics, she won't go into politics, she won't discuss it. But I think the reality of the situation is she's afraid of Donald Trump," he told CNBC Thursday.
Trump has previously slammed the Federal Reserve, saying it's doing what President Barack Obama wants by keeping interest rates low. He told CNBC this month that Yellen should be "ashamed" of what she's doing to the country.