On April 15, former U.S. Treasury Secretary Janet Yellen stated that Trump's pressure on the Federal Reserve to lower interest rates in order to reduce U.S. debt costs is akin to 'banana republic' rhetoric. Speaking at HSBC's Global Investment Summit, Yellen issued a warning regarding the independence of monetary policy, saying she had 'never seen such a level of threat to the Federal Reserve.' She questioned, 'Does a president of a developed country often express the view that interest rates should be set to lower debt servicing costs?' She added, 'This is common in banana republics.' She noted that managing interest rates for the sake of government budgets has led to 'hyperinflation' in some countries.
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