You don’t hear much about the Federal Reserve often. They’re supposed to be unbiased, but that idea couldn’t be further from reality.
And the Federal Reserve was just caught plotting to help Biden do something awful to Americans.
Plenty of families across the nation have felt the sting of “Bidenomics.”
Whether it was supply chain shortages that seem to still be around for certain industries or the fact that our dollar is worth less and less, Americans are sick of it.
Biden knows that he needs to act quick if he wants to get the momentum around the election back on his side.
According to Gallup polling, all economic issues account for the top priority of 30% of Americans, narrowly beating out immigration at 28%.
So what’s Biden going to do? Well the Federal Reserve may have a plan that threatens to hand the election to Biden and hurt the country’s economy long-term as well.
The Federal Reserve is expected to decrease interest rates this year before Election Day, which would likely give Americans a temporary boost as they prepare to vote, but the reduction will have long-term negative consequences, according to analysts.
“I think superficial is exactly the key because one of the things that happens when you cut interest rates is that you do get a temporary boost to the economy driven by an ease of access in terms of debt. So a lot of Americans right now, they can’t afford today’s punishingly high home prices, with today’s punishingly high interest rates,” EJ Antoni, research fellow in The Heritage Foundation’s Grover M. Hermann Center for the Federal Budget, told Fox News Digital in a phone interview.
“But if you allow interest rates to drop very quickly, then it’s going to take time for home prices to ramp up to counteract, essentially, that interest rate hike. So you get this temporary effect where Americans will feel wealthier because they’re able to spend more. Now, they’re spending outside of their means and the long-run effects of that are going to be very detrimental, but in the short run it feels great,” he continued.
The Federal Reserve is widely expected to decrease interest rates this year during two of its four meetings, which President Biden’s campaign could use as proof that inflation is dropping and to bolster voter confidence in the economy.
The Federal Reserve didn’t change interest rates at its March meeting for the fifth time in a row, keeping the federal funds rate at 5.25% to 5.5%, a 22-year high. The decision last month also kept interest rates on mortgages, loans, and credit cards elevated.
Consumer prices grew 3.2% on an annual basis earlier this year, and producer prices jumped 1.6% last month, both of which were higher than economists expected.
The central bank aims to decrease interest rates three times in 2024, which Antoni says references legendary economist Milton Friedman’s analogy of inflation to alcoholism, in which lowering rates will provide consumers with a temporary thrill but have “disastrous” consequences.
“Milton Friedman… used to compare it, this whole phenomenon, to alcoholism where, you know, the detox process is very painful, but in the long run it leads to health. But if you allow somebody to go back to the bottle, then they get a temporary buzz from indulging in alcohol again and the long-run effect is again going to be very disastrous,” he said.
According to Antoni, “politicians have been incentivized to put lipstick on the pig,” in terms of the economy, until after Election Day.
“Essentially, this is all about getting past Election Day. After that, it doesn’t matter, because the voters will have voted and, and so you’re unfortunately looking at a situation where the politicians have been incentivized to put lipstick on the pig until that first Tuesday in November. And then, after that, the reality can settle in and it won’t matter,” he said.
For Biden’s part, it looks like that’s exactly what he’s expecting to happen.
“I can’t guarantee it, but I’ll bet you – I’ll bet you those rates come down more because I bet you that little outfit that sets interest rates is going to come down,” Biden said during a speech in Philadelphia.
Stay tuned to the Conservative Column.
