Does the Fed act politically?

Does the Fed act politically, as Trump claims they do? i.e. they are not raising rates before the election because Yellen is Democrat-leaning. Or is this an unfounded claim? i.e. the economy is still weak. My colleagues and friends are fairly split on this.

 

What would you say if your voter base had an overwhelming opinion and feeling that the "system" was "rigged" against them.... Probably that another "system" is being "rigged" by your opponent. Let's not think too much about this.

 
Best Response

you won't get a solid answer on this because there's evidence for both sides. the yes camp will say they want to keep rates low so the gummint can borrow more money at cheap interest, and the no camp will say that the terms are long enough to avoid this. it doesn't matter to be blunt with you.

also, don't believe the debates until the fact checked manuscripts come out. just be wary that fact checkers have political biases too...

my opinion is the fed has economic biases, which are misconstrued as political biases (keynesian vs. free marketeer vs. milton friedman vs. austrian etc. etc. etc.). often times keynesians are democrats and free marketeers are republicans, so you can see why he could think that.

 

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