Republicans Should Make Sure the Fed Doesn’t Get Political in an Election
The left will stop at nothing to try to keep Trump out of power. From corrupt prosecutions to fraudulent impeachment efforts, many Democratic leaders have shown they clearly believe that the end justifies the means with the former President. With Biden and Harris having failed on every level, the Democrats are getting increasingly desperate. The border remains open, the US’s standing abroad is the weakest we’ve seen in our history, prices remain high, and the country is even further divided. There are also now signs that the economy is further deteriorating.
The United States economy relies on consumer spending for nearly 70 percent of domestic GDP, and most people and families are facing depleted savings, higher credit costs, and now increasing unemployment rates. Biden and Harris’s economic policies have failed, and unless the Fed steps in to bail out a failed administration, the weakening economy will likely end even the fairly remote chance that the Vice President had to beat former President Trump.
Still, while the significant slowing of the US economy will likely lead Fed Chairman Powell to move up the central bank’s schedule for rate cuts, there is absolutely no justification for any massive intervention by the Fed like we saw after the financial collapse in 2008 or COVID hit in 2019. The banking collapse in 2008 was one of the worst economic events in modern history, and the pandemic was also one of the largest catastrophes we have seen in a long time. The current slowdown in the economy, which is likely necessary to bring prices down over the long term, provides absolutely zero basis for any massive intervention by the Fed, and Republicans should be careful to make sure the Fed does not take reckless and short-sighted actions for political reasons.
Fed Chairman Powell has a history of questionable actions that have looked political. He raised interest rates dramatically with no justification ahead of the 2018 mid-term elections when inflation data remained tepid, causing the market to sell off hard ahead of those elections that resulted in Democrats taking control of the House of Representatives. Insiders who work for Powell have also indicated that the Chairman is committed to fighting against Trump and pushing a left-wing agenda, including a focus on what the Democrats refer to as climate change. The former head of Project Veritas, James O’Keefe, published a video with a Fed insider talking about Powell’s agenda.
A principal economist at the Fed was caught admitting that the current Chairman of the central bank hates Trump and also supports the far left’s agenda, which is why Powell’s bizarre actions ahead of the 2018 election look suspect. While obviously, we all want the economy to remain strong, business cycles are a normal and healthy part of the capitalist system, and a slowdown in growth in the short term is likely the only way to bring prices meaningfully down over the long term. There is absolutely no justification for any massive stimulus or intervention by the Fed like we saw in 2008 or 2020.
Harris is behind in nearly every national poll and in most polls in key swing states such as Pennsylvania, Michigan, and Wisconsin. Even the slightest sign that the economy is further weakening would likely end her campaign and cause massive political losses for the Democrats in the House and Senate as well. The Congress remains unlikely to agree on any significant stimulus package at this point either. With the most important election just months away, Republicans should be careful to make sure the Fed does not try to intervene on behalf of the current failed and corrupt administration.
