Will Powell’s Pivot Bail Out Biden?
227 sats \ 8 comments \ @Undisciplined 14 Dec 2023 econ
I've been skeptical that Biden would get the same Fed policy benefits that most incumbents receive, but we're getting towards election season and soon we'll find out what they're going to do. Plus, many of the normal economic indicators suggest the Fed should be cutting interest rates anyway, so it wouldn't necessarily just be an attempt to help the sitting president.
Will Powell’s Pivot Bail Out Biden? By Tho Bishop "With a doveish pivot, Jerome Powell is declaring victory over inflation. It would be extraordinarily naive to ignore the influence of next year’s presidential election on the Fed’s new outlook."
write
preview
related posts
279 sats \ 1 reply \ @kilianbuhn 14 Dec 2023
Do you remember that the huuuge printing spree of 2020 was in the end of the Trump era right before an election as well?
I think the printing is just an inherent disease of fiat that HAS TO happen regularly. So regularly in fact, that they can't keep track of who has the presidency. The boat is way too shaky already for luxuries like that
reply
100 sats \ 0 replies \ @Undisciplined OP 14 Dec 2023
You can compare Fed actions under non-incumbent election conditions vs their actions during incumbent elections. I forget who did the study, but it's been shown that the Fed behaves differently, under the same economic conditions, when there's an incumbent running for president in an election year.
Perhaps that's also what happened in 2020, but with all the pandemic measures it's hard to find a control period for reference.
reply
269 sats \ 5 replies \ @grayruby 15 Dec 2023
Yes and no. They will lower rates prior to the election but not sure it will filter through the broad economy in time to bail out Biden. Good for asset prices though but people with maxed out credit cards who have been crushed by inflation the past couple years won't benefit much from stocks going up.
reply
100 sats \ 4 replies \ @Undisciplined OP 15 Dec 2023
Can you charge stonks to your credit card? Asking for a friend.
reply
269 sats \ 3 replies \ @grayruby 15 Dec 2023
Does Robinhood take credit cards? I know coinbase used to. I bought my first $100 in bitcoin with my mastercard.
reply
100 sats \ 2 replies \ @Undisciplined OP 15 Dec 2023
Wow, it never occurred to me that people would actually buy stocks on a credit card.
reply
269 sats \ 1 reply \ @grayruby 15 Dec 2023
That was the easiest way to buy bitcoin on coinbase back in the day. Just charge it to your card. Don't need to transfer money from your bank or wire money in. But then at least in Canada the banks blocked crypto exchanges from credit card purchases. Some banks even blocked debit card purchases.
reply
100 sats \ 0 replies \ @Undisciplined OP 15 Dec 2023
It makes sense wrt bitcoin, especially early on.
reply