Yellen hits back at Trump: Fed not 'politically compromised'

Federal Reserve Chairwoman Janet Yellen responded to Republican nominee Donald Trump's accusations that the Fed's rate hike decision was politically motivated, during a press conference Wednesday.

“I can say emphatically that partisan politics play no role in our decisions," Yellen said during her announcement that the Fed would keep rates at their current levels. “We do not discuss politics at our meetings, and we do not take politics into account in our decisions.”

Trump has said Yellen has kept interest rates low because she is "obviously political" and "doing what President Obama wants her to do." By keeping rates low the Fed is creating a "false market" and keeping stocks high to help boost Obama's popularity, Trump argued in an interview with CNBC on Sept. 12.

"I think she should be ashamed of herself because it is not supposed to be that way," Trump said.

Yellen never mentioned Trump by name, but was asked by reporters about his comments. “The Federal Reserve is not politically compromised,” Yellen insisted. “I can’t recall any meeting that I have ever attended where politics has been a matter of discussion."

Yellen said politics would also not affect the Fed's decision on rates at its next meeting, which is scheduled in November, a week before the election.

“I’m not going to get into politics,” she said. “I’m not going to get involved in commenting on the election.”

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