Politics Makes the Fed’s Job Trickier, but Doesn’t Drive Its Decisions

Central bankers are independent of the White House as they set interest rates. But the political cycle can put them under unwanted limelight.

Federal Reserve officials are widely expected to embark upon a rate-cutting campaign in the coming months, bringing borrowing costs down from elevated levels as cooling inflation allows policymakers to stop squeezing the economy so much.

But they will most likely do that against a fraught political backdrop.

The Fed is expected to start cutting rates in mid-September, not long before voters in the United States head to the polls to elect a new president. Central bankers will meet about rates again on Nov. 6-7, just days after the election.

Jeanna Smialek | NYT

Related News

Browse By Category

Share:

Send Us A Message