Currency market: Fed Funds vs presidential elections
|The question: Is the Federal Reserve prone to influence presidential elections by cutting interest rates during presidential campaigns. This question is already debated within the news media.
A presidential election occurs every 4 years by votes in November. To answer the question, actions by the Fed must account for 1 year during campaigns.
As an independent body, does the Fed have a right to change interest rates during campaigns and near to actual votes cast. How great was the requirement to change and why not after elections. Should the Fed place a moratorium to not change rates to maintain independence or is the Fed active to elect favored candidates.
Greenspan was a Republican while Bernanke, Yellen and Powell are Democrats.
To slash interest rates, raises GDP therefore GDP travels higher during campaigns and prior to votes cast. Was correct Economics considered or to influence favored candidates.
Greenspan term 1987 to 2006
1991 = Lowered Fed Funds 9 X and 300 points. Democrat Bill Clinton defeats Republican George Bush.
Did Greenspan assist to elect Clinton.
1995 = +50, and -25, -25 prior to voting. Democrat Bill Clinton Re Elected.
Did Greenspan re elect Clinton.
1999 = +75. Last 25 point raise in November during Presidential votes. Republican George Bush Elected.
Was Greenspan trying to elect Democrat Al Gore and Bush just happened to win more votes.
2003 = -25, June and no significance. Republican George Bush re-elected.
Bernanke 2006 to 2014
2007 = cut -100, last lowered 25 in October and 1 month prior to voting. Democrat Obama elected.
Did Bernanke assist to elect Obama.
Yellen 2014 to 2018
2015 = +50 in December, after Presidential votes cast in November. Republican Trump Elected. No influence.
Powell 2018 to 2023
2019 = +75 and last raise October just prior to November votes. Democrat Biden elected by a stolen election.
Did Powell assist the Biden election to defeat Trump.
2024?
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