The Fed's rate hike strategy gives the Republicans a huge advantage for 2024.

[Yavin4]

The Fed is looking to raise interest rates up to 5% next year. The last time it was that high was in 2008 which triggered the housing collapse and brought about the Great Recession.

If there is a repeat, then that gives the Republicans a huge advantage in 2024. Trump, DeSantis, Nikki Haley, Josh Hawley, etc. will all benefit politically from a moribund economy.

Today's Fed decision is bad news for the future of this country.

[Lovie777]

1. Not so fast . ...

[Yavin4]

3. How so?

When people are hurting economically, they will vote for change in leadership.

[Scrivener7]

2. Yep. And that's not unintentional. Every time the stock market looks like it's getting on

it's feet, they raise the rate again. Clockwork.

[Samrob]

4. They know what they are doing and why and who it really benefits. They did to Clinton too.

It didn't work then but it is working now because this MAGA generation is part of the "poorly educated."

[Fullduplexxx]

5. hence the rate hike from trump's fed pick

[edhopper]

6. The rate hike did not cause the collapse

That was a bubble waiting to burst. The biggest bubble in history according Krugman.


The Fed is fighting a high temporary inflation rate. 2024 is a long way away economically

[ProfessorGAC]

8. Thanks, Ed

Hyperinflated prices caused the collapse, not tight money.
Loose money created the bubble. Raising rates was not a cause.

[Yavin4]

10. I said "triggered" not "caused"

An event can trigger subsequent events, but that does not mean that the trigger caused the event.

[edhopper]

11. The rate was steadily increased

And reached 5% in 2006. That was not the trigger.

[Xolodno]

7. Uuuuhhhhhmmmm.....I wouldn't go so far yet.

2023 is probably when the effects get felt and the Fed reverses course and 2024 could be a recovery year. Reality is, economist can't predict when a recession will occur much less a recovery or how long it will last. They can only give you a vague forecast, once they start seeing the indicators roll in.

Under Obama during the great recession, the GOP was getting ready to pounce on the numbers as it was nearing election season...to their dismay, they weren't worse and showed us going into recovery.

[Buckeyeblue]

9. I think a lot depends on Ukrainian War

If the war ends and Russia has new leadership we could see some inflation relief since this inflation seems to be energy related.