What I don’t know is whether the Fed is ready for the political firestorm it’s about to face, and whether it will stand up to the pressure to keep rates too high for too long.
Because it’s a safe prediction that Donald Trump and his supporters will scream that the coming rate cuts are part of a deep-state conspiracy to re-elect President Biden.
Biden, however, is already presiding over a very good economy by normal standards, with solid job growth and plunging inflation.
They will signal to the public that inflation really is under control; they will lead, other things being equal, to higher stock prices and lower mortgage rates.
And when it comes to interest rate policy, Trump has a track record of doing exactly what I’m sure he will accuse Biden of doing: trying to manipulate the Fed.
In a recent dialogue with me about the economy, my colleague Peter Coy suggested that the Fed may be inhibited from cutting rates because it’ll fear accusations from Trump that it’s trying to help Biden.
The original article contains 929 words, the summary contains 175 words. Saved 81%. I’m a bot and I’m open source!
This is the best summary I could come up with:
What I don’t know is whether the Fed is ready for the political firestorm it’s about to face, and whether it will stand up to the pressure to keep rates too high for too long.
Because it’s a safe prediction that Donald Trump and his supporters will scream that the coming rate cuts are part of a deep-state conspiracy to re-elect President Biden.
Biden, however, is already presiding over a very good economy by normal standards, with solid job growth and plunging inflation.
They will signal to the public that inflation really is under control; they will lead, other things being equal, to higher stock prices and lower mortgage rates.
And when it comes to interest rate policy, Trump has a track record of doing exactly what I’m sure he will accuse Biden of doing: trying to manipulate the Fed.
In a recent dialogue with me about the economy, my colleague Peter Coy suggested that the Fed may be inhibited from cutting rates because it’ll fear accusations from Trump that it’s trying to help Biden.
The original article contains 929 words, the summary contains 175 words. Saved 81%. I’m a bot and I’m open source!