Trump’s push to cut interest rates has echoes of ‘banana republic’, says Yellen

Former US Fed chair says lowering rates to reduce debt service cost can lead to inflation getting out of control

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The former US Federal Reserve chair Janet Yellen has attacked Donald Trump’s push for lower interest rates, comparing it to the actions of a “banana republic”.

The US president has repeatedly urged the central bank to slash interest rates, in the hope of cutting the government’s borrowing costs on its $39tn (£29tn) debt.