The Federal Reserve, while independent, is under political scrutiny especially when making decisions that might influence upcoming elections. Currently, they are leaning towards cutting rates.
Lowering interest rates ahead of elections can be seen as politically motivated, with both parties using the Fed's decisions to bolster their own narratives and influence.
Past experiences, like those in the 1970s with Nixon, highlight the risks of Fed decisions becoming entangled with political pressures and the resultant economic consequences.
Fed officials uphold their dedication to an independent decision-making process, asserting that their focus remains solely on inflation and employment, not political considerations.
Collection
[
|
...
]